October 1st, 2013 Business & Market Update

Well, looks like the kids in DC just couldn’t share the crayons and now have shut down the non-essential government services in the US.  As I have mentioned in past blogs, a deal will be struck and the debt ceiling will be increased and we will move on to the next crisis.  In the interim, nothing else has changed.

Overnight, markets in Asia were mixed and relatively flat.  Euro markets are higher by about a half a point despite some disappointing economic news out of Germany and the continuing Italian government saga of “Where’s the Prime Minister”.

In North America, US futures were not phased by the budget idiocy as futures are higher by about a third of a point.  Canada is flat this morning.

Gold is in another free fall as the commodity is lower by about 33.00 to 1295 suggesting that a solution is in the works to the crisis.  Oil is down a half a buck to 101.40 and the loonie is flat at 96.96.

The 10 year bonds in both the US and Canada are both trading lower this morning causing yields to rise to 2.63% and 2.56% respectively.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

www.glwm.ca

Friday, July 26 Business and Market Update

News out of Asia today in regard to Japanese prices moving higher.  It would seem that the greatest part of the move was in regard to higher hydro costs with a lesser contribution coming from durable goods.  Also, the Yen has been moving higher the last couple of weeks (along with Gold) as the US dollar has been under pressure due to the constant Fed speak on longer term stimulus plans.  Markets in Japan were off about 3.00 and in China about half a point.

Europe is flat a region, however both the UK and Germany were lower by about a half a point.  Even with better earnings across the board in the region, many are using the recent rally to take profit.

US futures are trending down this morning by about a half a point awaiting yet another round of Fed talks next week.  Earnings have been strong especially the mandate companies, but markets overall are fixated on the Fed and their next move.

Canada is following the US lead this morning and will open down about a tenth of a point.

Gold is off about 10.00 to 1323, oil is down 0.68 to 104.83 and the loonie is flat at 97.30.

Bond yields edged a little over the week with the ten years in both Canada and the US at 2.42% and 2.57% up about 0.05% respectively.

Looking at earnings news, Gilead Sciences came in at estimates but beat on the top line by a big margin.  The stock is moving higher in the pre-market by about 8%.  TransCanada also met estimates on both earnings and revenue.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

canaccord.com

July 12th, 2013 Business & Market Update

It would seem that the Chinese are starting to come to terms with the fact that growth at 8 to 10% a year is just not sustainable over time and a senior official in the finance department has suggested that 6 to 7% is more realistic for the balance of the fiscal year.  That comment caused the markets over there to fall by about a point and a half overnight.  Japan was relatively flat.

In Europe, we are seeing modest gains at midday with markets higher by about a quarter point.  Factory output in May fell for the first time in four months showing that the economy is still fragile in the region.  On the positive side, S&P has upgraded its outlook on Irelands credit rating suggesting the debt may fall faster than anticipated. While other countries in the union seem to be fighting continuously politically as to how to get things done, Ireland’s political parties have put the politics aside and got things done. Pretty rare in the world today but a great example to other countries in financial crisis.

The US markets are set to open slightly higher as JP Morgan and Wells Fargo both beat consensus estimates.  JP Morgan’s loan loss provisions were lower by 78% and both the top and bottom lines were stronger regardless of  higher mortgage interest rates for the quarter.

Markets have had a nice rebound this week based on the clarification by the FOMC on the tapering program in regard to asset purchases.  The gains have been across the board as cash and fixed income assets continue to flow into the capital markets.

In Canada we are going to see about a quarter point advance on the open following the US lead.

Commodities are mixed with gold off 7 to 1273, oil up 0.60 to 104.99 and the loonie down a fifth of a cent to 96.29.

Bond yields have retreated this week after the Fed minutes release with the ten year treasury yield falling back to 2.55% from 2.66% last week.  In Canada we got a similar move with 10 year GOC bonds yielding 2.42% down from 2.51% last week.

For now we seem to be in a holding pattern going deeper into earnings season which will tell the story in regard to continued recovery.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

www.glwm.ca