IAIC Market Update - September 27, 2021

(source: Bloomberg https://www.bloomberg.com/markets, MSCI https://www.msci.com/end-of-day-data-search and ARG Inc. analysis)

What happened last week?

• Major domestic and international events influenced markets last week including:
• The U.S. Federal Reserve kept its monetary policy for interest rates and bond-buying unchanged in its announcement on Wednesday indicating, “If progress continues broadly as expected the Committee judges that a moderation in the pace of asset purchases may soon be warranted.” (Source) 
• Concerns that China’s housing and property developer, Evergrande, could default on interest payments contributed to a decline in equity indices. Evergrande’s $300 Billion debt load and $100 Billion of real estate sales last year represent a significant concentration risk but should not threaten the stability of the global banking system.
• The Liberals were re-elected to another minority government in Monday’s Canadian federal election gaining an additional two years, potentially, to their mandate. A significant mandate in their election platform is to increase taxes on Canadian major banks, which nearly every Canadian investor owns directly or indirectly. (Source) 
  
  

What’s ahead for this week?

• In Canada, employment numbers (new jobs, labour force participation, unemployment rate) for July will be announced. Real Gross Domestic Product (GDP) for July, an important indicator, will be released along with the industrial product price index and raw materials price index for August.
• In the U.S., durable goods orders, goods trade deficit, wholesale, and retail inventories, pending home sales, home price index, personal spending and income, construction spending, automobile sales and Purchasing Managers Indices, all for August, are scheduled for release in a busy week.
• Globally, Eurozone money supply, consumer and economic confidence, inflation and jobless rate will be released along with Japan’s jobless rate retail sales and industrial production and Germany’s consumer inflation and unemployment.