The Chinese government ordered measures to cool off the residential housing market and to that end caused the equity markets in the country to fall by more than 3% overnight. The rest of the Asian markets fell to a lesser extent except for Japan which posted a slight gain.
Europe this morning is trading slightly higher regardless of the continued stalemate in the Italian parliament. The talk of another election in a couple of months is on the table again which will cause continued uncertainty.
In North America we are seeing some downside bias this morning with futures trading down about a quarter point.
Gold is up a little this morning at around the $1575 mark and oil is virtually flat at just over $90.00 a barrel.
A couple of other interesting items this morning:
Obama raised anew the issue of cutting entitlements such as Medicare and Social Security as a way out of damaging budget cuts, a White House official said on Sunday, as both sides in Washington tried to limit a fiscal crisis that may soon hit millions of Americans and the Keystone XL oil pipeline got a boost on Friday when the U.S. State Department said the project would not likely change the rate at which Canada’s oil sands are developed, discounting warnings from environmentalists that it would lead to a spike in greenhouse gas emissions.
Kenneth A. Dick, BA, CIM, CFP, FCSI
Portfolio Manager & Branch Manager