Canadian interest rates to hit 4%
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US Markets Stock futures were down over the holiday weekend following a negative end to last week's trading. - Stocks saw losses for the third consecutive week. The Dow was down 3% on the week, the S&P 500 lost 3.3%, and the Nasdaq dropped 4.2%.
- The S&P 500 is also below its three major moving averages, which is often a sign of a potential upcoming crash.
- The current 10 Year U.S. Treasury yield is set at 3.19880%
| Dow Jones | 31,318.44 | -1.07% | | S&P 500 | 3,924.26 | -1.07% | | Nasdaq | 11,630.86 | -1.31% | | Russell 2000 | 1,809.75 | -0.72% | *Stock Market data as of the last closing bell. Data received directly from the reference indexes through ICE Data Services. Do you not understand any of these figures? Check out our explainer.
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Canadian Markets Bank of Montreal predicts that interest rates in Canada will rise to 4% before the Bank of Canada considers changing its approach to fighting inflation. - This claim comes as the housing market in Canada has shown signs of stabilizing, which could indicate that more tightening is required, the Bank of Montreal said.
- Bank of Montreal predicts a 75-basis point hike at the Bank's meeting on Wednesday.
- The Bank of Canada has already raised rates from 0.25% to 2.5% this year.
*Canadian stock prices are as of the last close. Data received directly from the references indexes through ICE Data Services
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European Markets Markets in Europe were down on Monday as investors remain concerned about energy shortages in the region. - The Stoxx 600 lost 0.6% on Monday after recovering from a 1% drop earlier in the session.
- The automotive industry was the worst performing after losing 4.8%.
- The oil and gas sector was one of the few to finish in the green, gaining 2% on the day.
| Euro STOXX 50 | 3,490.01 | -1.53% | | UK (FTSE 100) | 7,287.43 | 0.09% | | Germany (DAX) | 12,760.78 | -2.22% | | France (CAC 40) | 6,093.22 | -1.20% | *European stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.
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Asian Markets Stocks in Asia were down on Monday due to numerous market factors, including the devaluation of local currencies, high energy prices, and local economic data. - China's Services Purchasing Manager's Index fell from 55.5 in July to 55 in August.
- EV and tech stocks fell on Monday, causing the Hang Seng to sink.
- The Japanese government said it could decide to reactivate more nuclear plants to deal with energy supply issues.
| S&P Asia 50 | 4,390.25 | -2.20% | | Japan (Nikkei 225) | 27,619.61 | -0.11% | | South Korea (KOSPI) | 2,403.68 | -0.24% | | China (Hang Seng) | 19,225.70 | -1.16% | | India (SENSEX) | 59,245.98 | 0.75% | *Asian stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.
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Commodities Commodity prices were up over the long weekend, with metals and other safe-haven assets seeing a significant rise. - Spot gold was up, while U.S. gold was even.
- Spot silver, platinum, and palladium were up slightly over the weekend.
- The supply of platinum has declined, both from mines and recycling, creating upward pressure in the market.
| Gold (NYSEARCA:GLD) | 159.26 | 0.88% | | Silver (NYSEARCA:SLV) | 16.57 | 1.16% | | Corn (NYSEARCA:CORN) | 26.61 | 0.68% | | Lumber (NASDAQ:WOOD) | 74.34 | -1.34% | *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities, click here.
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Oil Oil prices were up over the weekend and on Monday. - The U.S. is refusing to agree to a nuclear deal with Iran, which diplomats claim most other Western countries had already agreed to. A lack of a deal would prevent Iranian oil from entering the market.
- G7 countries agreed to cap the price of Russian oil exports. This means that the U.S., Canada, France, Germany, Italy, the U.K., and Japan will follow this cap. There are concerns about its effectiveness without the support of China and India.
- OPEC+ agreed to cut production by 100,000 barrels per day starting in October.
| Oil (NYSEARCA:OIL) | 31.00 | 1.41% | *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities, click here.
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Currency Exchange Rates The U.S. Dollar continued to rise over the weekend and on Monday, even with U.S. markets closed. - The U.S. Dollar Index hit 110 on Monday, a new 20-year high.
- The Euro was also up as the U.K. Pound Sterling continued to fall, hitting a new 2.5-year low.
- Investors are currently pricing in a 55% chance of a 75-basis point rate hike at the next Fed meeting.
| UK(GBP) | £0.87 | -0.06% | | Europe (EURO) | €1.01 | 0.24% | | Canada (Canadian Dollar) | $1.31 | 0.08% | | Japan (Yen) | ¥140.59 | 0.27% | *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, click here.
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 |  | Liam Gill is a founder, lawyer and investor.
He previously founded Fumarii Technologies, which became a top 20 ranked cloud computing service (Yahoo Finance! 2019) valued at over $30M. He holds an LLB Laws (UK), MSc Management and Master of Laws and currently practices law in Vancouver, Canada.
|   | | Editor | Eduardo Garcia is a writer and editor based in New York. He is the author of "Things You Can Do," an illustrated book about climate action. Bylines in The New York Times, The Guardian, Slate, Scientific American, and others. In one of his previous lives, Eduardo worked as a Reuters correspondent in Latin America for nearly a decade. | |
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