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 Natural Gas Continuous Contract (NG.F) & iShares US Financials ETF (IYF)

It has been another rough week for equity markets around the world with big daily and even intraday swings in both directions. That being said, so far indices have held above key support levels, such as 2,100 for the Russell 2000, suggesting that we are currently in a downswing within a broader sideways trend. Recent choppiness can be attributed to a number of factors most notably related to investors increasingly recognizing that the easy money party of the last 18 months is winding down. This week, the Reserve Bank of New Zealand became the first sizeable central bank to announce an interest rate increase, having finished asset purchases earlier this year.

The main event of the last week has been a big rally in Energy prices that carried crude oil to its highest level since 2014 and natural gas to its highest level since 2008 with investors increasingly worrying about supply disruptions and an inability for capacity to keep up with demand. Renewed interest in energy commodities has spilled over into energy stocks on both sides of the border as well.

The coming week brings a number of key economic announcements including US nonfarm payrolls and Canadian inflation on Friday, followed by inflation and retail sales numbers for the US and China after Monday’s Canadian and partial US holiday. Investors may look to for signs of whether they add to the case for tapering or not. Earnings season also starts next week with big banks and brokerages leading the way as usual. In this issue of Equity Leaders Weekly, we look at recent strength in the natural gas price and at renewed interest in US Financials as the start of earnings season approaches.

Natural Gas Continuous Contract (NG.F)

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