Key Market Insights September 7

8 min read

US Markets

Stock futures were down over the holiday weekend following a negative end to last week’s trading.

  • Stocks saw losses for the third consecutive week. The Dow was down 3% on the week, the S&P 500 lost 3.3%, and the Nasdaq dropped 4.2%.
  • The S&P 500 is also below its three major moving averages, which is often a sign of a potential upcoming crash.
  • The current 10 Year U.S. Treasury yield is set at 3.19880%
Market Price Move
Dow Jones 31,318.44 -1.07%
S&P 500 3,924.26 -1.07%
Nasdaq 11,630.86 -1.31%
Russell 2000 1,809.75 -0. 72%

 

Canadian Markets

Bank of Montreal predicts that interest rates in Canada will rise to 4% before the Bank of Canada considers changing its approach to fighting inflation.

  • This claim comes as the housing market in Canada has shown signs of stabilizing, which could indicate that more tightening is required, the Bank of Montreal said.
  • Bank of Montreal predicts a 75-basis point hike at the Bank’s meeting on Wednesday.
  • The Bank of Canada has already raised rates from 0.25% to 2.5% this year.
Market Price Move
TSX 19,270.85 0.67%

 

European Markets

Markets in Europe were down on Monday as investors remain concerned about energy shortages in the region.

  • The Stoxx 600 lost 0.6% on Monday after recovering from a 1% drop earlier in the session.
  • The automotive industry was the worst performing after losing 4.8%.
  • The oil and gas sector was one of the few to finish in the green, gaining 2% on the day.
Market Price Move
Euro STOXX 50 3,490.01 -1.53%
UK (FTSE 100) 7,287.43 0.09%
Germany (DAX) 12,760.78 -2.22%
France (CAC 40) 6,093.22 -1.20%

 

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Asian Markets

Stocks in Asia were down on Monday due to numerous market factors, including the devaluation of local currencies, high energy prices, and local economic data.

  • China’s Services Purchasing Manager’s Index fell from 55.5 in July to 55 in August.
  • EV and tech stocks fell on Monday, causing the Hang Seng to sink.
  • The Japanese government said it could decide to reactivate more nuclear plants to deal with energy supply issues.
Market Price Move
S&P Asia 50 4,390.25 -2.20%
Japan (Nikkei 225) 27,619.61 -0.11%
South Korea (KOSPI) 2,403.68 -0.24%
China (Hang Seng) 19,225.70 -1.16%
India (SENSEX) 59,245.98 0.75%

 

Commodities

Commodity prices were up over the long weekend, with metals and other safe-haven assets seeing a significant rise.

  • Spot gold was up, while U.S. gold was even.
  • Spot silver, platinum, and palladium were up slightly over the weekend.
  • The supply of platinum has declined, both from mines and recycling, creating upward pressure in the market.
Market Price Move
Gold (NYSEARCA:GLD) 159.26 0.88%
Silver (NYSEARCA:SLV) 16.57 1.16%
Corn (NYSEARCA:CORN) 26.61 0.68%
Lumber (NASDAQ:WOOD) 74.34 -1.34%

 

Oil

Oil prices were up over the weekend and on Monday.

  • The U.S. is refusing to agree to a nuclear deal with Iran, which diplomats claim most other Western countries had already agreed to. A lack of a deal would prevent Iranian oil from entering the market.
  • G7 countries agreed to cap the price of Russian oil exports. This means that the U.S., Canada, France, Germany, Italy, the U.K., and Japan will follow this cap. There are concerns about its effectiveness without the support of China and India.
  • OPEC+ agreed to cut production by 100,000 barrels per day starting in October.
Market Price Move
Oil (NYSEARCA:OIL) 31.00 1.41%

 

Currency Exchange Rates

The U.S. Dollar continued to rise over the weekend and on Monday, even with U.S. markets closed.

  • The U.S. Dollar Index hit 110 on Monday, a new 20-year high.
  • The Euro was also up as the U.K. Pound Sterling continued to fall, hitting a new 2.5-year low.
  • Investors are currently pricing in a 55% chance of a 75-basis point rate hike at the next Fed meeting.
Market Price Move
UK(GBP) £0.87 -0.06%
Europe (EURO) €1.01 0.24%
Canada (Canadian Dollar) $1.31 0.08%
Japan (Yen) ¥140.59 0.27%

 

Good trading,
Chris Svorcik

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