Stocks continue to sell off this morning. US index futures are down 0.2% to 0.75% with NASDAQ futures getting hit the hardest. This adds of yesterday’s losses of 1.5% for the Dow Industrials, 2.1% for the S&P 500 and 3.2% for the NASDAQ. European markets are also in retreat for a second straight day with the Dax down 0.9% and the FTSE falling 0.6%.
Commodity trading is mixed this morning. US Crude Oil has climbed back up above $70.00/bbl with a 0.2% gain, while Copper is down 0.3%. In currency action, Gold is steady and still above $2,500/oz, but Bitcoin is down 2.3%, suggesting that risk appetite is shrinking.
The Canadian Dollar is steady this morning ahead of today’s Bank of Canada interest rate decision, which is due at 9:45 am EDT. The central bank is expected to announce a 0.25% interest rate cut for the third meeting in a row. Investors may also look to the statement for insights into the state of the economy, particularly whether Canada may be heading toward a soft landing or a recession.
Service PMI reports from overseas are out this morning and the results have been coming in above 50 in expansion territory and in many cases, including the UK, above street expectations as well. This side of the economy appears to be doing significantly better than the manufacturing side based on this week’s reports. US factory orders are due at 10:00 am EST today. Headline data for the rest of the week includes US ADP Payrolls and Service PMI tomorrow, followed by US Nonfarm Payrolls and Canada Employment on Friday.