Markets:
The AI trade rebounded on Monday as memory and chip names jumped on renewed optimism even as CoreWeave shares edged lower on debt worries. Amazon shares also jumped after an upgrade, gaining 5%. Despite that, decliner outnumbered advancers 2:1 so the breadth of the move was narrow.
Part of the reason for that was an intraday reversal in oil prices. Crude started the week lower on Trump's waiving of sanctions on Russia but that move faded and then reversed on reports of small US strikes in Iran and Houthi strikes on Saudi oil infrastructure. Oil finished the day solidly higher and that spilled over into bonds, with US 10s up 4 bps to 5.14%.
US economic data was light but the NAHB numbers highlight how 2027 could be a rough year for the housing market if interest rates stay at these levels. In Canada, the loonie slipped after CPI numbers weren't as hot as expected. Despite that, RBC shifted its call to a BOC rate hike this month as central banks everywhere appeared to shift hawkishly at the IMF meetings, likely after sharing stories of broadening price pressures. Along those lines, the BOC survey of consumers showed rising 5-year inflation expectations.
Finally, we are entering a period of intense election activity with eyes on the US midterms, Brazilian election, Israeli election and Canadian referendum. That's coming at the same time as the Q3 reporting calendar picks up.
This article was written by Adam Button at investinglive.com.
Source: Investing Live - News
