Overnight in Asia, markets were fairly quiet, despite a big increase last month in Chinese home prices. The biggest in three years which has some wondering how inflationary this may be and will the PBOC respond.
In Europe, markets are higher by about a half of a point on the jobs news out of the US. The monthly Non-Farm Payrolls for September were finally released this morning and the number was far below estimates coming in at 148000 vs. 180000 estimated. The unemployment rate fell to 7.2% from 7.3% on the participation rate falling. However, the news was not all bad as August was revised higher by 24000 to 193000. Bottom line growth is occurring however until Washington gets its act together many companies will not actively hire. Some form of tax reform must take place to assure companies that hiring and expending capital into bricks and mortar will be rewarded down the road. US futures are higher by a quarter point this morning on the news.
Gold is up 14.00 to 1328 on a weaker US dollar, oil is off another 0.27 to 98.95 and the loonie is flat at 97.04. The US and Canadian 10 year bonds continue to strengthen this morning as yields are 2.54% and 2.50% respectively.
In mandate earnings news, Lockheed-Martin beat on both earnings and revenues and indicated higher guidance for the balance of the fiscal year. Whirlpool also beat on both earnings and revenues but cautioned on the balance of the year. Both stocks are set to open higher this morning. After the market close CN Rail will report, I will provide the details tomorrow.
|Kenneth A. Dick, BA, CIM, CFP, FCSI
Branch Manager & Portfolio Manager | Independent Wealth Management
Canaccord Genuity Wealth Management