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