SIACharts Logo

Commentary >

 PHLX Oilfield Services Index (OSX.I) & iShares MSCI Taiwan ETF (EWT)

It has been a short, sideways week for equity markets. Stocks fell heading into the holiday weekend and have bounced back a bit to start a new week, but not enough to offset their previous declines, leaving markets essentially in a holding pattern for the moment.

Meanwhile, monthly price reports indicate inflation pressures continue to build, pushing traded interest rates higher and sending the US 10-year treasury note yield (TNX.I) toward 2.90%, its highest level since late 2018. With inflation on the rise, gold, historically seen as a store of value, has been moving up as well, recently taking a run toward $2,000/oz once again.

Earnings season in the US is off to a very mixed start. There have been some high-profile disappointments particularly Netflix, which sent its stock crashing to a 30%+ one day loss, but it did not have a wider impact outside of the content/streaming sector. Numbers out of the US banks have been very mixed, but early reports from other sectors have been promising so far. From here, we move into the heart of earnings season with a flood of results coming from Big Tech, Big Pharma, Big Oil, Big Mining, Big Rail and more big caps. Earnings also start to come out from Canadian companies in the coming days. Headliners include Freeport today, Newmont tomorrow, Microsoft, Alphabet and Canadian National Tuesday, Canadian Pacific and Boeing on Wednesday with even more big names later next week.

In this issue of Equity Leaders Weekly, we consider the wider implications of recent weakness in Taiwan shares and at a breakout in the oilfield service sector.

 PHLX Oilfield Services Index (OSX.I)

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.