Oil Plunges as Political Risk Premium Evaporates

The new trading week has kicked off with a major selloff in the price of oil. Over the weekend, Israel elected not to hit Iranian energy production or distribution facilities in its latest military response and as such some of the political risk premium that had been built in has quickly been removed. Precious metals are also coming down today, at a more moderate pace as political risk eases for now but support from easing monetary policy continues. Gold is down 0.3%, while Silver is down 0.6% and Platinum is down 0.8%. Copper is down 0.4% today.

US index futures are up this morning, posting gains of 0.25% to 0.50% with NASDAQ Futures leading the charge.  European bourses are falling to start the week with the FTSE down 0.5% and the Dax down 0.2%.

It’s Big Week for earnings reports headlined by Big Tech, Big Oil, Big Pharma and other big cap names. Five of the “Magnificent Seven” stocks report results this week including Apple*, Amazon, Alphabet, Meta Platforms and Microsoft. Other headliners include Exxon Mobil, Chevron, Eli Lilly, Merck, Mastercard, McDonalds and Caterpillar.  Canadian headliners this week include Fairfax Financial*, Agnico-Eagle Mines*, Imperial Oil, Enbridge, Canadian Natural Resources and Magna International.

The economic calendar starts off slow but really picks up as the week progresses and the calendar turns to November. Headliners include US ADP Payrolls and Q3 GDP on Wednesday, Canada GDP and US Core PCE inflation on Thursday, wrapping up with Manufacturing PMI reports and US Nonfarm Payrolls on Friday.

*Shares of Apple, Fairfax Financial, and Agnico-Eagle are held in portfolios managed by SIA Wealth Management

Terms and Conditions:


This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, Advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIA Wealth Management Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.