July 22, 2022Money Education Financial literacy Economy Good reads Commentary In the news News Trending Weekly commentary
What's Happening Today - July 22
Do you follow the market every day?
If you do, you probably shouldn’t – Nobody needs that added stress. After all, you have us to worry about that!
But if you do, you’ll notice a lot of green this week. Although, perhaps I spoke too soon as indexes start to dip this morning. Still, as of writing, the TSX is up over 3% for the last five trading days, and the other major US indexes are up around 2%.
In Canada, May’s retail data came out today showing an increase of 2.2%, versus an estimate of 1.6%. This was led by higher sales of gasoline, motor vehicle, and car parts. Next week, the Federal Reserve down south decides whether to increase interest rates by 0.75%. At least that’s what the market is saying. However, it could easily be 1.00% because, as I mentioned on Tuesday, cooling down red-hot inflation is more important than temporally contracting economic output.
Across the Atlantic where the work week has already ended, Asian markets closed mixed but were also on course for the best week in months. Japan's core consumer inflation remained above the central bank's 2% target for a third straight month in June, but in line with analyst expectations. As expected, Japan’s central bank kept rates on hold at ultra-low levels. European markets were also higher in choppy trading, though Eurozone business activity unexpectedly contracted this month, with companies continuing to report that the rising costs are forcing consumers to reduce spending.
And although there is still no end in sight to the war in Ukraine, the two countries did manage to secure a deal where they would allow the export of grain across the Black Sea. This could help avoid a major food shortage catastrophe for millions worldwide. That same country (that shall not be named) also dropped its overnight interest rate in a surprise move as its central bank tries to navigate a world of ongoing and persistent sanctions from the West.
Hope everyone has a great weekend. Mike is back next week, and we wish Kelly a safe trip as heads to Detroit with the family!