September 8th 2022, 9:13:28 pm

(about 9 months ago)

North American equities extend their gains.

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North American equities advanced for the second, and bond yields dropped as markets are waiting on the US Fed Chair, Jerome Powell, to speak on Friday on the next steps for interest rate hikes. S&P 500 and Nasdaq added 1.41% and 1.67% and Canada’s S&P/TSX composite gained 0.75%. The trading volume remained below average.


Jerome Powel will clarify on Friday what investors can expect on the economic outlook and the path of interest rates. The officials have been clear that the Fed will continue raising rates to control inflation. Investors are still trying to understand the direction of economic indicators.


One clear outcome of the rising rates has been the declining house prices in the US. Pending home sales in the US dropped by 1.0% in July. It was the second month of decline. US housing supply shows to be standing at near peak levels last seen around 2007 before the financial crisis. More sellers are willing to supply housing, and most buyers cannot afford the high payment on mortgages.


Elsewhere, the crypto market continues to underperform. However, the two vanguards of the crypto world had very different performances, with Ethereum outperforming Bitcoin. Ethereum is up 22% monthly, while Bitcoin is little changed.