Skip to main content
top links

A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web

Research from Nomura indicates that global fund managers are moving assets from technology to health care stocks in large numbers, and the trend is unlikely to stop soon,

“It thus looks as though money shifted from healthcare funds into technology funds from 2016 into 2017, then started to shift back from technology funds into healthcare funds from mid-2018 . The share prices of stocks owned by technology funds have already started to correct, reflecting weaker fundamentals. Some observers might be looking for an imminent rally, but supply-demand conditions have started to deteriorate. We see little prospect of a reversal in fund flows without a change in fundamentals.”

“@SBarlow_ROB Nomura: Funds moving from tech to healthcare and it's unlikely to stop” – (research excerpt) Twitter


Bank of Montreal economists assessed the potential impact of pro-business measures announced by the Trudeau government Wednesday,

“Ottawa’s big response to the aggressive U.S. corporate tax package was accelerated depreciation for business investment. It will be immediate expensing (100%) for manufacturing and processing machinery and equipment, along with clean energy equipment (these had 25% depreciation rates before) … Will today’s steps be enough to quell the rising tide of competitiveness concerns? In a word: Probably not, at least not by themselves. Today’s announcement is a good first step in strengthening the business climate in Canada—but we would encourage an even more forceful response in coming months”

“@SBarlow_ROB BMO: Federal measures to increase competitiveness will not be enough” – (research excerpt) Twitter


Crude prices dropped yet again Wednesday after a U.S. Department of Energy report indicated continued inventory growth,

“ U.S. commercial crude oil inventories climbed by 4.9 million barrels to 446.91 million barrels last week, the U.S. Energy Information Administration (EIA) said on Wednesday, its highest level since December… U.S. crude oil production also stayed at a record 11.7 million barrels per day (bpd), the EIA said … More U.S. crude could also be heading to market as the U.S. pipeline bottlenecks are cleared in the second half of 2019. The increase in U.S. oil output has outpaced capacity to transport the additional crude.”

Oil falls on rising U.S. inventories, OPEC talk of cut limits loss” – Report on Business

“@Ole_S_Hansen Brent Crude #oil: The latest slump has done a great deal to support demand from some of the world's biggest buyers.” – (chart) Twitter

“Oil’s ‘lower for longer’ reasserts itself” – Financial Times (paywall)

“Canada considering proposal to buy rail cars to move stranded crude – sources” – Reuters

“@JKempEnergy U.S. CRUDE OIL stocks are rising much faster than normal at this time of year, narrowing the deficit to 2017 and increasing the surplus to the 10-year average” – (chart) Twitter


Tweet of the Day:

Diversion: “‘Roma’ Is the Movie Event of the Year. Will It Matter That You Won’t See It on a Big Screen?” – The Ringer

My print column: “The big global banks haven’t been this pessimistic on the outlook for markets since the financial crisis” - Barlow, Inside the Market