Prab Sagoo, associate director at Nasdaq Advisory Services, explains in his weekly commentary how markets have reacted to global uncertainty.
- The market continues to see significant swings. Today marks the fifth-consecutive triple-digit change in the TSX. Canadian volatility is also hitting highs not seen since the financial crisis. (Read about how to take advantage of volatility here.)
- Chinese concerns are likely to continue, despite the country once again cutting interest rates. It appears growth concerns will be more important than the welfare of the stock market. Today’s move points to possible further weakness in the Chinese markets, and definitely more volatility in the region.
- Canadian banks are reporting earnings in the next two weeks, with BMO beating estimates on Tuesday. If we see weakness from these companies, the TSX will likely suffer as well: financials comprise a significant weighting.
- Important Canadian labour market data is due out Thursday. Investors will be looking at it to see how much the Canadian economy is actually hurting.