News and Updates

A string of disappointing news has turned market sentiment negative this morning. Overnight, UK headline inflation data showed that inflation rose at an annual pace of 10.1% over the past month, suggesting that the Bank of England has some work to do in raising interest rates. Then, the Bank of Atlanta Regional Fed President commented that he would like to see rates above 5%. This morning, in what is scheduled to be another busy day for earnings, Morgan Stanley’s stock fell after it posted a decline in net revenue and income. Bank earnings will be reviewed closely for any signs of further turmoil after last month’s collapse of a few US regional banks and the sale of Credit Suisse to UBS.

Perhaps it’s the change in seasons, but there has been a growing sense of cautious optimism in the global equity markets over the past few weeks. Inflation appears to be easing, the US regional banking system has stabilized, and the extensive interest rate hikes by the Federal Reserve in the US and the Bank of Canada are approaching their terminal points or are currently on an extended pause.

On Thursday, the US dollar continued its recent decline against most major currencies, hitting a two-month low against the Canadian dollar. This followed a day of significant economic news on both sides of the border on Wednesday.