Prab Sagoo, associate director at Nasdaq, says we should expect more volatility as we approach the end of the quarter.
Key themes for this week:
- It’s a holiday shortened trading week, with a mid-week break due to Canada Day. This could result in extra volatility for Canadian stocks either side of the holiday (though more likely on Thursday) as the Greek situation remains very fluid and there could be significant developments while Canadian markets are closed.
- The weak GDP report could bolster calls for another rate cut by the Bank of Canada. This would result in a weaker Canadian dollar, though equities will likely be more responsive to Greek developments.
- We are approaching the end of the quarter, which will also add to volatility in individual shares as some portfolio managers will engage in window dressing – a practice where managers will improve the look of their portfolios at the end of the quarter (ahead of issuing quarterly financial statements) by purchasing big winners and selling some of the most notable laggards.