May 13th, 2013 Market Update

This morning in Asia, Chinese Factory Output numbers were released and they were weaker than expected, which took the Chinese markets lower overnight by about a half a point.  Japan, however rose another 1.5% taking the market there to another near term high.

In Europe, the Chinese news filtered through the markets there and has the Euro Stoxx Index down about a quarter point at midday.

In the US April Retail Sales numbers came in at 0.1% vs. estimates of minus 0.3%, which was a nice upside surprise.  Retail Sales at 30% of consumer spending is an important contributor to growth in the economy and the upside surprise has caused futures to trim earlier losses to a virtual flat open.

US dollar strength is causing gold, oil and the loonie to fall this morning.  Gold is off a quarter point to 1432, oil is off half a point to 95.66 and the loonie is trading up 5 basis points to 99.06.

Looking at Canada, it would seem that the Obama administration is unlikely to make a decision on the Canada-to-Nebraska Keystone XL pipeline until late this year as it painstakingly weighs the project’s impact on the environment and on energy security, a U.S. official and analysts said on Friday.  The delay continues to weigh on heavy oil producers in the west as the longer the pipeline is delayed the longer the pricing mechanism for heavy crude stays at a discount to West Texas and Brent crude.

Last but not least, tonight the Leafs are actually in a game seven match-up, the first in a long time and do have a chance to win!  For as bazaar as it may seem if they do win, watch the sky for the blue moon later in the evening!

Kenneth A. Dick, BA, CIM, CFP, FCSI

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

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