Trouble from China unsettling markets. That and more from Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly commentary.
- Investor apprehension about Chinese growth remains palpable and that continues to feed into the TSX. This quarter alone the benchmark index has lost over 10% with resource stocks driving losses. Eight out of 10 sectors are in correction territory, two of the heaviest weighted are in bear markets.
- U.S. employment data is the highlight this week in the form of non-farm payrolls due Friday. If we get a strong reading it will go some way to assuaging some investor concerns about the state of the U.S. economy.
- Canadian investors will be keenly eyeing the July GDP data to see if the economy started off the second quarter on a positive note and if it managed to build any positive momentum, as hinted in recent economic releases.
- Bearishness continues to persist in the market with weekly CFTC data showing fund managers increased their exposure to short options/futures contracts to a new YTD high.