While Canadian’s were off for the Victoria Day long weekend, the US was open for business yesterday and it was red arrows for equity and bond markets with the trade buzz remaining the main driver of risk sentiment. After a mixed session in Asia overnight that ended well for Chinese markets erasing Monday’s losses and then some (SHANGHAI COMP +1.23%), risk sentiment is following suit south of the border while TSX futures are essentially flat and potentially playing catch up with yesterday. Data-wise, there’s nothing particularly compelling today (US: Apr Existing Home Sales) ahead of the only busy day for data tomorrow that has Canadian March Retail Sales (core survey +0.9% / prior +0.6%) and the minutes from the May 1st FOMC meeting. Jerome Powell spoke yesterday at a banking conference in Florida, and while he did point out “moderate” risk to the economy from lower grade corporate debt, he was largely singing the same tune with most of the data in solid shape while inflation remains low. The US is gearing up for a long weekend of their own with American markets out for Memoria Day next Monday.
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