October 18th, 2013 Market Update

Some good news out of China overnight as the economy there grew in the last quarter annualized at 7.8% which was greater than estimates.  Also, Industrial Output was stronger with Retail Sales slightly below estimates.  The markets were stronger overnight up a quarter point.

Europe is stronger at midday by about half a point as trade talks were completed with Canada opening the door for the US to continue negotiations.  Canada’s deal expands the free trade deal to 42 countries from 14 and is positive for both regions.

US futures are higher this morning on earnings news as GE, Google and Morgan Stanley all beat estimates.  Kansas City Southern missed on earnings by a small margin but beat on revenues.  Futures are higher by about a quarter point.

Gold is off 4.00 to 1317 on US dollar strength, oil is higher by 0.85 to 101.51 and the loonie is flat at 97.15.  Bond markets are rallying again this morning as the US and Canada 10 year bonds are yielding 2.58% and 2.53% respectively.

After a couple of crazy weeks, it would seem that this week will come to an end on a quieter basis allowing all to take a breath and regroup.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management