The Daily Chase: Countdown to BoC rate decision; Flood of ESG investing creates 'wild west'

It’s shaping up to be another bumpy trading day.

It’s shaping up to be another bumpy trading day. After spending most of the overnight hours in positive territory, U.S. futures sagged into the red shortly after 4 a.m. That’s after tech got thumped last week as investors walk away from expensive growth stocks ahead of the U.S. Federal Reserve’s rate decision this week. The Nasdaq’s rout, however, is nothing compared to what’s happening in crypto, where Bitcoin sank 21 per cent over the last week and is down 50 per cent since its November high.

COUNTDOWN TO THE MAIN EVENT

Two more sleeps until the Bank of Canada’s interest rate decision. As of early this morning, the implied probability of a quarter-point increase Wednesday was almost 73 per cent, and markets were pricing in up to seven hikes this year. We’ll keep gathering perspective on the case to raise and what could happen if the bank fails to deliver. And be sure to check out Michelle Zadikian’s roundup for BNNBloomberg.ca on how the rate-hike cycle will affect the economy and your portfolio.

‘WILD WEST’ OF ESG INVESTING

At a time when we’re inundated with announcements from companies touting their environmental, social and governance bona fides, investors are often left to their own devices filtering the legitimate from the so-called greenwashing; and that point was made evident last week when Canada’s securities regulators mapped out new guidance on disclosures. But even that isn’t enough to assuage concerns. Check out Cathy Miyagi’s reporting at BNNBloomberg.ca, and stay tuned for a conversation this afternoon with ESG Global Advisors CEO Sarah Keynes, who warns the flood of interest in ESG has created a “wild west.”

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