Yesterday was particularly difficult for most asset classes with our screens awash in red. Escalating tensions with North Korea were once again to blame for massive profit-taking on stock markets. The S&P 500, Nasdaq and S&P/TSX Index in Toronto lost 1.45%, 2.13% and 0.94%, respectively. The session was just as difficult for the price of WTI crude oil, which was down by 1.96%. Investors sought shelter in the U.S. dollar, gold and the bond market. The VIX implied volatility index is currently at its highest level since November 2016.
Markets remain jittery today while we await the release of U.S. Consumer Price Index figures at 8:30. The low inflation rate remains one of the top concerns of the U.S. Federal Reserve, which seems to be hesitating to further tighten its monetary policy.
The Canadian dollar is up slightly this morning, while the futures market is pointing to a bearish opening on the main North American stock markets.
Emmanuel Tessier-Fleury
Range of the day: 1.2640 – 1.2820
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