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 Sector Scopes Monthly Update & ISE Global Wind Energy Index (GWE.I) 

Investors in North America have returned to work following the Labor Day end to summer holidays just in time for indices to retreat for two consecutive days. News flow has been light this week so last week’s disappointing US nonfarm payrolls may be weighing on sentiment.

It is important for investors to remember that September has historically been the weakest month of the year for equities with limited corporate news between earnings seasons leaving investors to place more of an emphasis on economic numbers. There is also some political uncertainty with election campaigns underway in Canada and Germany and the US still haggling over spending with the potential for a government shutdown later this year if a deal cant be reached.

The US Dollar has been climbing this week while equities have been falling which suggests that investors may be taking a more defensive stance as we move deeper into the most volatile time of the year which runs from mid-August through late October. Some commodity markets have been under pressure including grains and copper, while energy contract trading continues to be distorted by the impact of Hurricane Ida on production and inventories.

The coming week is pretty quiet for economic and corporate news. The European Central Bank meets today which investors may look to for hints on whether tapering is on the table for this year or not. Next week’s calendar is dominated by inflation, retail sales and industrial production reports from Canada, the US and China.

In this issue of Equity Leaders Weekly, we look out monthly look at Sector Scopes and at what trading action in the alternative energy sector is telling us about investor sentiment and rolling takedowns.

Sector Scopes Monthly Update

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