All eyes on Janet Yellen. That and more from Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly commentary.
- We are set for a busy week. The headline event is the Federal Reserve rate announcement on Wednesday. A rate hike is expected. Interest-rate-sensitive stocks are likely to weaken and we may also see further weakness in the Canadian dollar versus the U.S. dollar.
- Domestically, inflation data is due out Friday, as is a rebalancing of the TSX indices. This will add further volatility.
- From last Friday’s close, we were a little under 3% off from bear market territory and a move below August lows may mean the TSX may take another leg lower.
- Tax loss selling will likely also pressure the benchmark. The deadline for domestic stocks is late next week, though activity may start sooner ahead of the holiday period, where volumes are likely to be lighter.