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 Sector Scopes Monthly Review – February 2023 & FTSE 100 Index (LFS.F)

The first week of February has been one of consolidation, with world equity markets digesting the strong gains made in January. Corrections have been minor and major indices continue to build on recent positive signals including Head and Shoulders or Ascending Triangle base completions, Bullish Catapults and Golden Crosses. This week the FTSE has become the first major index to reach a new high in over a year (more on this below). Several days have seen softness in the early morning hours followed by recovery through the trading day to a positive close, a sign of resilience and accumulation.

Improved investor confidence has been supported by last Friday’s stronger than expected US nonfarm payrolls data. Falling wage inflation and recent comments from Fed Chair Powell on “disinflation” suggest that even though the Fed is continuing to raise rates now, it’s rate hike program is likely in the later innings.

The coming week brings a number of potentially significant reports for investors. Notable reports include Canada’s monthly jobs data tomorrow, US consumer price inflation on Tuesday, and US retail sales on Wednesday.

The coming days bring the peak of earnings season for Canada, with headliners including Thomson Reuters, Telus, Cameco, Canada Goose, Canopy Growth and others today, Magna and Enbridge tomorrow, Suncor Energy, First Quantum, and West Fraser on Tuesday, and Shopify, Manulife, Barrick Gold and Nutrien next Wednesday. US earnings season is now past its peak with results dominated by small and mid-cap companies. US notables include Coca-Cola on Tuesday and Cisco Systems on Wednesday.

In this edition of the Equity Leaders Weekly, we take a our monthly look at Sector Scopes and consider the significance of the recent new all-time high for the FTSE.

Sector Scopes Monthly Review – February 2023

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