Overnight the Chinese government reiterated the commitment to a 7% growth rate by providing the stimulus necessary to continue to achieve the goal. Market in Asia on the news were up with China leading the way up more than 2%. Japan advanced by about a point. Australia which does a great amount of trade with China was up about a third of a point.
Europe was also higher on the news as a big trading partner. Markets in the region were up about a half a point at midday.
In North America, we are seeing some upside this morning on the China news and further positive earnings reports. Both US and Canadian futures are up about a quarter point.
Mandate company, Canadian National Railways reported after the close yesterday and beat estimates on both revenue and earnings. They did however warn of a challenging second half of the year.
Also, Canadian retail sales were released for May and beat estimates by a large margin coming in at 1.9% vs. 0.4% estimated.
Gold is trading down about 7.00 this morning to 1330, oil is off 1.00 to 105.98 and the loonie is up a quarter cent to 96.97.
Lastly, as I am sure all must know by now, the new royal was born yesterday afternoon. A bouncing baby prince. Name to be determined, I am betting on James.
|Kenneth A. Dick, BA, CIM, CFP, FCSI
Branch Manager & Portfolio Manager | Independent Wealth Management
Canaccord Genuity Wealth Management