SIACharts Logo

Commentary >

 NASDAQ Composite Index (NASD.I) & iShares MSCI Japan Index Fund (EWJ)

World markets have spent another week stuck in stagnation struggling to settle on a direction. Just as fears about US regional banks faded, up popped concerns about US debt ceiling negotiations to spark swings in sentiment from day to day. Soft retail sales and industrial production numbers out of China didn’t help matters but a somewhat encouraging start to retailer earnings season appears to be.

While the majority of equity indices have ended up flat on the week, the NASDAQ has continued to climb, indicating continuing interest in the Technology and Communications sectors. In International Equity action, the Japanese market has taken off this week while other major overseas indices paused. Crude Oil, Gold and Copper have been very choppy switching back and forth between rallying and retreating almost from day to day.

We have entered into what has historically been one of the two softer and more volatile times of the year for equity market trading which runs through to early July. Economic news for the coming week is dominated by North American housing market numbers, plus Flash PMI reports from around the world on Tuesday.

It’s the last big week for earnings reports for the quarter. Results from US retailers continue to roll out, headlined by Walmart today and continuing with specialty and mid-tier names like Best Buy and Gap in the coming days.

Perhaps more significantly the five largest Canadian banks are set to report results next Wednesday and Thursday. This time around, investors may focus on the banks’ exposure to the US market particularly since TD recently walked away from a planned US acquisition. Any comments on how rising interest rates have impacted business and the economy now that we are over a year in to the current hiking cycle may also attract attention.

In this edition of Equity Leaders Weekly, we look at how the NASDAQ Composite and the Japanese stock market as examples of increasing interest in selected US sectors and growing breadth in international equity markets.

NASDAQ Composite Index (NASD.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.