SIA Wealth Morning Minutes will not be issued tomorrow. It will return on Thursday August 6th.
Coming off a brutal start to the trading week, some of the hardest hit equity markets around the world have been bouncing back overnight and into this morning. US index futures are up 0.5%-0.7%, retracing some of yesterday’s 2.6%-3.4% US Index losses. Overseas, the Nikkei took back most of Monday’s losses with a 10.2% rally, while Seoul bounced 3.3%. European markets continue to struggle with the Dax down 0.1% and the FTSE down 0.3%.
Currency markets are also reversing some of yesterday’s moves. The US Dollar has bounced 0.2%-0.6% against most of the majors, including the Euro, Pound and Yen, while holding steady against the Loonie. Bitcoin has bounced 4.1% after getting crushed on Monday, while Gold is up 0.3%. Commodities are quiet with both US Crude Oil and Copper holding steady.
Earnings season has resumed this morning with Caterpillar (up 3.0% premarket) and Uber (up 5.9% premarket) responding favorably to earnings reports. We are now past the peak of earnings season in the US for big cap stocks, but there are still a lot of numbers from small and mid cap companies rolling out this week. In Canada, earnings headliners include Suncor Energy, Constellation Software*, Manulife Financial*, Great West Life, Nutrien, Wheaton Precious Metals*, Stantec*, AtkinsRealis Group*, Emera, Canadian Tire, and Air Canada.
Service PMI reports released yesterday were a mixed bag. The US beat expectations on the headline number, but the prices paid (inflation) component was worse than expected. Canada dominates the calendar for the rest of the week with Bank of Canada minutes tomorrow and employment on Friday. Overseas, China releases trade numbers tonight and inflation data Thursday night.
*Shares of Constellation Software, Manulife Financial, Wheaton Precious Metals, Stantec, and AtkinsRealis are held in portfolios managed by SIA Wealth Management.