Key Market Insights August 26

August 26, 2022

8 min read

US Markets

Stocks were up on Wednesday after a rough start to the week that included the worst trading day in three months on Monday.

Economic reports show that Prairie provinces will likely be the fastest-growing areas of Canada.

The Conference Board of Canada forecasts that the Saskatchewan economy will grow 7.6% in 2022.
Alberta, whose economy is largely dependent on oil, is expected to expand by 4.9%.
Quebec is expected to have some of the worst growth as an aging population continues to negatively impact the local economy.
Ontario and British Columbia are forecast to grow as their manufacturing and tourism industries recover.

Market	Price	Move
TSX	20,021.38	0.18%

European stocks are mostly positive on Wednesday as market sentiment turned positive following a negative start to the week.

The Stoxx 600 rose 0.2% as household goods companies led markets with a 1.2% gain, while mining stocks dragged down markets, losing 1.8%.
Aveva, a British IT company, was up 27% after France’s Schneider said it was considering its acquisition.
Securitas, the Swedish security business, was the worst-performing stock in the Stoxx 600, losing 6% after posting poor financial results.

Stocks in Asia were mixed on Wednesday and did not benefit from the generally positive sentiment seen later in the day.

In mainland China, markets were down significantly as the Shenzhen Component lost 2.88% and the Shanghai Composite fell 1.86%. The Hang Seng was also down in Hong Kong, falling 1.2% on the day, including a 1.07% drop in the final hour of trading.
Tech stocks were down, with Xpeng losing 12% as the Hang Seng Tech Index fell 2.72%
Thailand’s Constitutional Court ordered the Prime Minister needed to vacate his office while the court reviews a case claiming that he has served more than his legally mandated eight-year term limit. The court has to decide whether the PM’s time as head of a military junta before a formal government was put in place should count toward the time limit. Stocks in Taiwan were up on the news.

Oil prices were up on Wednesday as investors became pessimistic regarding a potential Iran nuclear deal.

Brent crude was up 1%, while U.S. West Texas intermediate gained 1.3%.
Oil prices were lower earlier in the day as data showed that demand for gas in the U.S. was down 7% over the past four weeks, versus the same period last year.
OPEC+’s output is 2.9 million barrels below its daily target, which is putting upward pressure on prices.

The U.S. Dollar was up during U.S. trading hours on Wednesday against the top six fiat currencies.

The U.S. Dollar Index gained 0.13% to finish the day at 108.67.
Traders are estimating a 61% chance of a 75-basis point rate hike and a 39% chance of a 50-basis point hike.
The Fed seemed to indicate it would continue to be aggressive in fighting price increases after the annual inflation rate hit 8.5% in July, significantly above the 2% target.

Bitcoin was up slightly on Wednesday, benefiting from a move toward higher-risk investments caused by the market rebound.

Ethereum Foundation said the Ethereum Merge will start when the Bellatrix upgrade is activated on Sept. 6, with the actual Merge taking place between Sept. 10 and Sept. 20.
Tether will not ban Tornado Cash wallet addresses despite an investigation into Tornado Cash by U.S. authorities.
A U.S. judge ruled that Voyager can pay retention bonuses to its employees.