Candian Stock Market Outlook

June 21, 2010
Low volumes expected this week with the G20 conference in Toronto. Many investment houses will be understaffed with fear of protests plus road closures. Brokerage houses and their clients will likely try to avoid going to the financial district.

Watch for US fed rate decision on Wed and hope for 3% US growth rate in Friday's report. I think less than 3% and we'll see a small selloff. The US requires at least 2% growth in order to sustain momentum, otherwise the fragile recovery process will be jeopordized.

Something positive for commodities came out today. China is going to de-peg the Yuan. This means that the Yuan is likely to keep rising. This in turn will help natural resource prices move up for things such as oil and copper.

Overall the market sentiment seems to be more bearish than bullish. There is still the overhanging concerns over Europe's debt problems and the worry that they spill over into North America. Second quarter earnings will start to come out. The earnings may disappoint.

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