Prab Sagoo, associate director at Nasdaq, breaks down key market trends for this week.
- Yesterday’s trading saw a +200 point flip in the TSX. Expect this kind of volatility to continue in the near term, with the Greek overhang continuing to make the market jump on rumours. In addition, there’s significant volatility in Chinese equity markets, with government-sponsored purchasing of large-cap names helping to maintain some semblance of top-line normality.
- Oil prices continue to be volatile, as any sanction-easing deal with the Iranians is likely to further depress the price of oil.
- There’s an important Bank of Canada meeting next week (July 15). Yesterday we saw data showing Canada had the second-largest trade deficit on record in May, which added fuel to speculation on another interest rate cut. (A cut’s even more likely should oil prices continue to struggle). This has led to strength among utilities, REITs and telcos.