Key Market Insights September 13

8 min read

US Markets

U.S. equities ended their three-week losing streak after a positive showing by all three major indexes last week.

  • The Dow gained 2.66%, S&P was up 3.65%, and Nasdaq surged 4.14% on Friday.
  • Stocks were volatile throughout the week, but strong performances on Thursday and Friday helped them build momentum for this upcoming week.
  • Analysts aren’t sure if the bottom of the bear market has been reached and expect volatility to continue in the foreseeable future.
  • The current 10 Year U.S. Treasury yield is set at 3.31450%
Market Price Move
Dow Jones 31,151.71 1.19%
S&P 500 4,067.36 1.53%
Nasdaq 12,112.31 2.11%
Russell 2000 1,882.85 1.95%

 

Canadian Markets

Figures from Statistics Canada released Friday show that the Canadian economy lost 39,700 jobs in August.

  • The unemployment rate hit 5.4%, a significant increase from June’s 4.9% low.
  • Average wages were up 5.4%, more than the 5.2% increases recorded both in June and July.
  • 27,600 jobs were lost in the public sector, which was responsible for most job losses. The education and construction industries saw significant job losses.
Market Price Move
TSX 19,773.34 1.86%

 

European Markets

European stocks were up on Friday as investors reacted positively to the European Central Bank’s 75-basis point interest rate hike.

  • The Bank of England announced that it will be postponing its September monetary policy meeting by a week due to the Queen’s death.
  • The European Central Bank updated its inflation projections and now believes the Eurozone will have an average inflation rate of 8.1% in 2022.
  • The Stoxx 600 gained 1.6% on Friday, led by mining stocks (up 3.2%) and the tech sector (up 2.7%).
Market Price Move
Euro STOXX 50 3,570.04 1.64%
UK (FTSE 100) 7,351.07 1.23%
Germany (DAX) 13,088.21 1.43%
France (CAC 40) 6,212.33 1.41%

 

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Asian Markets

Markets were up on Friday in Asia, and futures continued to rise over the weekend in response to comments by U.S. Federal Reserve Chair Jerome Powell, who said he is committed to fighting inflation.

  • Friday was an overwhelmingly positive day for Chinese markets, with the Shangai Composite up 0.82% and the Shenzhen Component gaining 1.11% in mainland China, while the Hang Seng rose 2.69% in Hong Kong.
  • Consumer inflation rates in China were reported on Friday to have decreased to 2.5% in August from 2.7% in July.
  • Goldman Sachs is predicting that the People’s Bank of China will lower interest rates to help spark economic growth.
Market Price Move
S&P Asia 50 4,371.05 1.39%
Japan (Nikkei 225) 28,214.75 0.53%
South Korea (KOSPI) 2,384.28 0.33%
China (Hang Seng) 19,362.25 2.69%
India (SENSEX) 59,793.14 0.18%

 

Commodities

Gold prices gained 0.3% last week, breaking a three-week losing streak.

  • Spot gold was up 0.5% on Friday, while U.S. gold gained 0.4%. Gold futures in the U.S. continue to trade above the spot gold price.
  • Silver was also up on the week after gaining 1.2% on Friday.
  • Palladium had its best single week since July, while Platinum had its best week since June.
Market Price Move
Gold (NYSEARCA:GLD) 159.82 0.53%
Silver (NYSEARCA:SLV) 17.32 0.18%
Corn (NYSEARCA:CORN) 27.26 1.91%
Lumber (NASDAQ:WOOD) 75.64 2.42%

 

Oil

Oil prices rose on Friday after a volatile week that saw significant movements due to supply and demand factors.

  • Despite the rise on Friday, both major oil indexes finished the week slightly down. Brent crude lost 0.6% and U.S. West Texas Intermediate crude dropped 0.3%.
  • Russian President Vladimir Putin threatened to stop exporting gas to Europe if the G7 moves forward with price caps on Russian oil. This and OPEC+ oil output cuts were the main reasons for the supply concerns that caused a price rise on Friday.
  • However, prices fell during the week, as the U.S. beat stockpile estimates by nearly 9 million barrels, and China announced new COVID-19 lockdowns and posted lower-than-expected figures for trade and manufacturing. All these factors contributed to pesimism about global economic growth, which could have a negative impact on oil demand.
Market Price Move
Oil (NYSEARCA:OIL) 30.63 3.87%

 

Currency Exchange Rates

The U.S. Dollar fell to a one-week low on Friday as investors prepare for the publication of a U.S. inflation report this week.

  • The weekly decline in the U.S. Dollar Index, which closed at 108.96 on Friday, broke a three-week winning streak for the dollar.
  • Earlier in the week, the index hit a 20-year high, while the U.S. Dollar hit a 24-year high against the Japanese Yen and a 37-year high against the British Pound Sterling.
  • Investors estimate an 87% chance that the Fed will increase interest rates by 75 basis points later this month.
Market Price Move
UK(GBP) £0.86 -0.70%
Europe (EURO) €0.98 -1.40%
Canada (Canadian Dollar) $1.31 -0.21%
Japan (Yen) ¥142.51 -0.94%

Good trading,
Chris Svorcik

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