It appears that Friday’s North American selloff was primarily related to options expiry as markets have been bouncing back this morning. US Index Futures are up 0.4% to 0.7%, with Dow Futures leading the rebound from Friday’s US index losses of 1.7% to 2.2%.
In Europe today, the Dax is up 0.9% with investors celebrating yesterday’s German election results which saw the conservative CDU/CSU win about 28% of the vote and take over from the previous socialist government. The Alternative for Germany party came in second with about 21% of the vote. The FTSE is flat today.
Natural gas is getting hammered today, falling 6.9% as we move into the last weeks of winter in the US. Crude Oil is down 0.2%, while Copper is down 0.6%. Currency trading is relatively quiet. Both Gold and Bitcoin are up 0.3%.
Canada’s big banks report results this week starting with Bank of Montreal and Bank of Nova Scotia on Tuesday, followed by National Bank on Wednesday, and then CIBC*, TD Bank, and Royal Bank on Thursday. In the US, Nvidia is the headliner, reporting after the close on Wednesday. Earnings from US retailers continue to roll out as well, notably Home Depot, Lowes and TJX all on Tuesday.
The economic calendar is pretty quiet this week until Friday when we get Canada Q4 GDP and Chicago PMI. President Trump speaks later today.
*Shares of CIBC are held in some portfolios managed by SIA Wealth Management.