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 VanEck Vectors Steel Index ETF (SLX) & Global X Uranium ETF (URA)

Its a relatively quiet week for equity markets in what could be the calm before the storm as investors mark time waiting for the start of earnings season which kicks off next Wednesday-Thursday with results from several big banks and brokerages in the US, plus some of Canada’s media companies.In what looks so far like a case of “no news is good news”, confession season has been extremely quiet suggesting that managements appear confident that they can meet or exceed their guidance and/or street expectations for Q1 results. Economic news remains positive with the US posting spectacular job growth last Friday and European Service PMI reports showing improvement. This Friday brings Canada’s monthly employment report (street 100K vs previous 259K), which could cut through some of the recent noise around the impact of lockdowns on the economy. Yesterday’s Canadian Ivey PMI report for February was particularly strong (72.9 wow vs street 60.5). Overseas, the coming week brings a number of economic reports from the UK which may give an indication of the impact of Brexit three months in, and the country’s lockdowns.

Commodity action remains muted with copper hanging around $4.00/lb and WTI crude oil settling out near $60.00/bbl. Crude oil has seen mixed developments this week with demand improving enough for OPEC+ to allow production to start increasing again between May and July creating a headwind, offset by a tailwind from US weekly inventories showing increasing drawdowns.

In this issue of Equity Leaders Weekly, we take a look at two commodity markets which don’t usually attract attention from investors but have started to recently, steel and uranium.

VanEck Vectors Steel Index ETF

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