The U.S. economy will headline this week due to Wednesday’s Federal Reserve meeting—no rate hike is expected—and the release of non-farm payrolls data that’s slated for Friday, says Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly commentary.
Domestically, he notes, GDP data for August will come out on Tuesday. As well, the Labour Force Survey “will be keenly watched, given the questions about the strength of previous readings.”
- The TSX underperformed other benchmarks last week with a loss of 1%. But early on in the week, it had hit its highest level since June 2015. That’s just short of the 15,000 mark.
- However, the index retreated quickly with all but the defensive names losing ground, while year-to-date outperforming sectors were sold off.
- Energy stocks led the losses (-2.5%) as oil prices pulled back to their 50-day moving average. Despite gains in the price of gold, materials names lost 1%. Health stocks lost another 5%, down almost 40% year-to-date.
- Utilities, telco and staples managed to edge out small gains on the week, while small Cap stocks underperformed.
- The extent of the selloff meant there were 17 constituents sitting in technically oversold territory: five each from consumer discretionary and energy, but none from the staples, utilities, telco and materials sectors.
- The new Nasdaq dark pool in Canada, Nasdaq CXD, will begin trading today.