(April 3 – 11:45 ET) – Analysts seem to be still sizing up recent economic events, including the tech sell-off. Is it the beginning of a trend, or just a quarter-end phenomenon, they’re asking.
This Friday’s U.S. employment report will be the most important piece of data in their assessment. U.S. Federal Reserve Board chairman Alan Greenspan is known to put a lot of weight on those numbers. He is also speaking on Friday about technology and the economy, so he’ll be able to spook markets if he wishes. Bank of Canada governor Gordon Thiessen appears on Parliament Hill on Thursday. He is expected to reiterate
the BOC’s watchful stance.
Apart from the tech turmoil, the OPEC meeting was the most important event. CIBC World Markets analysts say that the OPEC increase will just be enough to fill the short term shortage in oil. What happens beyond mid-year will be critical.
BMO Nesbitt Burns Inc. believes the worst may be over in gas prices, noting that even at peak prices, the financial markets weren’t hampered. Nesbitt says none of the tools geared to slowing the economy seem to be working, including tightening by the Fed and huge U.S. trade deficits. “The bottom line is that as long as equities remain aloft, there is precious little outside of Fed tightening to cool growth. And that tightening may need to be much more aggressive than the market currently expects to bring GDP growth closer to the Fed1s comfort zone of around 3%,” Nesbitt says.
On the earnings front, First Call says that there are few announcements next week, and even fewer negative pre-announcements. This seems to point toward a good quarter for earnings. Tomorrow, Putnam Lovell is hosting a 2-day money management conference, including a look at C.I. Fund Management Inc., Mackenzie Financial Corp., Trimark Financial Corp. and Legg Mason, which just bought Perigee. This should focus some attention on these firms.
-IE Staff