March 12th, 2013 Market Update

Overnight Asia traded lower on profit taking and some confusion on which way the Chinese government will go in regard to the latest set of economic data that was released Friday.  Markets in the region were off about a half a point on average.

In Europe, the markets are mixed at midday.  Italy’s borrowing rates went up slightly yesterday as a bond auction took place in the wake of the Fitch downgrade.  Markets are virtually flat on average across the region.

In North America, we are seeing a slight downside bias this morning as futures are currently off by about a tenth of a point.  We are seeing some profit taking on the recent new highs in the US.

Paul Ryan (the Republican Vice-Presidential candidate) is set to release a new set of budget reform documents today, which are mostly regurgitated from the election platform, but it does represent an attempt at a compromise, which many will welcome.  I would be very surprised if the proposals went anywhere, but it does give the children in Washington something to argue about today.

Gold is up about $15.00 on a technical rally and oil has rebounded back over $93.00 per barrel or about three quarters of a point.

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

Portfolio Manager & Branch Manager

Independent Wealth Management


March 4th, 2013 Market Update

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