We start this week with some good news out of China as Industrial Production there was strong in October causing markets to rally there by about a quarter point. Japan was higher by more than a point on the US employment news that came Friday causing the dollar to rally and the yen to fall.
In Europe, a positive by Angela Merkel’s conservatives and the Social Democrats that a deal has been struck on the contours of a European banking union under which a body attached to European finance ministers, not the European Commission, would decide when to close failing banks. This is a breakthrough for the two political parties, unlike our friends to the south that will help to shore up the banking system in the region. Markets there are stronger on the news by about a third of a point.
Moving to North America, US and Canadian futures are just slightly higher this morning as the markets continue to digest the employment news and the whether the elusive “taper” is back on the table sooner as opposed to later.
Gold is down a couple of bucks to 1282, oil is lower by 0.35 to 94.23 and the loonie is flat at 95.44. Bond markets after a bump in yields Friday are quiet this morning with 10 year yields for the US and Canada bonds at 2.74% and 2.60% respectively. The spread is widening between the two countries as the US may reduce liquidity before Canada does.
Lastly this morning, on this Remembrance Day, I ask all to take a moment and be thankful for all that have given their lives in past conflicts and continue to do so today to provide us with the freedom that we all enjoy. Lest we forget.
|Kenneth A. Dick, BA, CIM, CFP, FCSI
Branch Manager & Portfolio Manager | Independent Wealth Management
Canaccord Genuity Wealth Management