5 from 5i: Negative-yielding bonds, bonds that eat your money

Chris White Jul 26, 2019

Market View

US futures were higher today after a string of strong corporate earnings. Canadian futures rose, helped by gains in oil prices. Oil prices increased as geopolitical tensions in the Middle East remained unresolved. Asian stocks traded sideways as the US China trade talks see no progress. Gold inched upwards and the US dollar saw some strength as investors await the US second-quarter GDP data. The Canadian dollar was 75.82 cents. U.S. S&P500 was up 1.2% this week and TSX ended the week flat. 

Technology jumped the highest by 2.3%, followed by consumer discretionary and consumer staples, both of which jumped by 2.0%. Industrial was up by 1.2% and real estate by 1.3%. Energy slid by 3.0%, and healthcare by 1.7%. Agnico Eagle Mines posted a better-than-expected adjusted profit for the fourth quarter straight, helped by higher realized gold prices. Suncor Energy reported a 5% rise in second-quarter operating profit, as production rose to 803,900 barrels of oil equivalent per day in the quarter, which was a record. Teck Resources reported a slightly lower-than-estimates quarterly profit, hurt by lower copper and zinc prices, as the macroeconomic outlook remains weak. Canadian National Railway posted a better-than-estimated quarterly adjusted profit as volumes of crude, refined petroleum products and grains shipped rose. Operating ratio improved to 57.5% from 58.2% a year earlier. Loblaw reported a 2.4% fall in quarterly profit, as it continues to invest in building its e-commerce network and retail stores. Rogers Communications reported a 10% rise in quarterly profit, benefitting from growth in its wireless and cable segments.

5 from 5i

Here are five reads we found interesting last week:

-Negative-yielding bonds, bonds that eat your money

-Stock market and small-cap underperformance

-What does momentum represent in your investment style

-Netflix (NFLX): how to lose $24 billion in value in 6 days

-What defines a bull market: earnings or multiple expansion


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