Key Market Insights August 31

7 min read

US Markets

Stock futures are up slightly after a negative start to the week for U.S. equities.

  • Futures indicate that all three indexes will likely open Tuesday up 0.1%.
  • Despite the decline in stock price on Monday, there are positive indications that the market will get back on track. Approximately 66% of stocks were negative on Monday compared with 86% on Friday, which was an irregularly high amount.
  • The current 10-year U.S. Treasury yield is set at 3.09310%
Market Price Move
Dow Jones 32,098.99 0.57%
S&P 500 4,030.61 -0.67%
Nasdaq 12,017.67 -1.02%
Russell 2000 1,882.94 -0.89%

 

Canadian Markets

TD Bank predicts that the average house price will fall 20-25% from Q1 2022 to Q1 2023.

  • Last month, housing prices nationwide were down 5% on average.
  • This prediction is the most negative of all the major financial institutions, with RBC predicting a 15-20% decline and Desjardin predicting a 15% decline. All other predictions are less than 15%.
  • Home sales in Canada were also down 5.3% last month.
Market Price Move
TSX 19,836.12 -0.19%

 

European Markets

European markets were down on Monday as the negative sentiment from Friday continues to impact stocks worldwide.

  • Tech stocks led losses, falling 2% as the major indexes in Germany, France, and Italy all fell more than 1% on the day.
  • Markets in the U.K. were closed for a national holiday.
  • Uniper was the worst performing stock in the Stoxx 600 as the energy company fell 6% on the day.
Market Price Move
Euro STOXX 50 3,570.51 -0.92%
UK (FTSE 100) 7,427.31 -0.70%
Germany (DAX) 12,892.99 -0.61%
France (CAC 40) 6,222.28 -0.83%

 

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Asian Markets

Stocks in Asia are mixed on Tuesday morning after suffering significant losses on Monday.

  • New data from Japan shows that the unemployment rate stayed steady at 2.6% in July.
  • Honda and LG are up after announcing a joint venture to build a new battery factory.
  • Australian stocks are up despite fears that high-interest rates could restrict economic growth.
Market Price Move
S&P Asia 50 4,524.08 -2.44%
Japan (Nikkei 225) 28,175.31 1.06%
South Korea (KOSPI) 2,442.96 0.66%
China (Hang Seng) 19,858.90 -0.82%
India (SENSEX) 57,972.62 -1.46%

 

Commodities

Oil prices saw a significant rise on Monday due to potential cuts in production by OPEC+.

  • Saudi Arabia has been discussing the possibility of cutting production to keep costs high.
  • OPEC will be meeting on Sept. 5 to set its policy.
  • Brent crude gained 4.1% on Monday, while U.S. West Texas Intermediate gained 4.2%.
Market Price Move
Oil (NYSEARCA:OIL) 34.33 4.57%
Gold (NYSEARCA:GLD) 161.86 0.05%
Silver (NYSEARCA:SLV) 17.29 -0.40%
Corn (NYSEARCA:CORN) 27.26 1.83%
Lumber (NASDAQ:WOOD) 77.84 -0.33%

 

Currency Exchange Rates

The U.S. dollar hit a new 20-year high on Monday as the hawkish tone from Fed Chairman Jerome Powell boosted the dollar.

  • The dollar index hit 109.48 before falling later in the day to finish at 108.78.
  • The Euro rose significantly on the day while the Pound Sterling continued to fall and is now at a 2.5-year low.
  • The odds of a 0.75% rate hike increase to 70%.
Market Price Move
UK(GBP) £0.85 0.40%
Europe (EURO) €1.00 -0.27%
Canada (Canadian Dollar) $1.30 -0.15%
Japan (Yen) ¥138.62 0.77%

 

Cryptocurrency

Bitcoin traded below $20,000 for much of Monday before rising late in the day to regain the crucial price point.

  • Bitcoin’s price has been volatile since falling 5% in the hours after Jerome Powell’s speech on Friday.
  • Bitcoin’s price has decreased in three of the last four weeks.
  • Bitcoin’s price continues to be heavily tied to stock prices as it has failed to differentiate itself and act as a hedge against inflation.
Market Price Move
Bitcoin $20,163.10 0.56%
Ethereum $1,531.70 7.35%
Litecoin $54.67 2.32%
Bitcoin Cash $118.11 2.47%

 

Good trading,
Chris Svorcik

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