April 16th, 2013 Market Update

Another sombre morning as we all send our thoughts and prayers out to those affected by the terrorist attack at the Boston Marathon yesterday.  While it has been suggested it was small in nature, three are dead, including an 8 year old and more than 100 injured many critically.  The cowardice that this act makes us all angry, but the focus should be on the health of those affected and support for the authorities in bringing those responsible to justice.

Moving to the markets it was a relatively quiet night in Asia as markets there were mixed.  Europe following the release of German investor morale declined in April to date which has the markets there off about a quarter point at midday.

In the US positive earnings from Goldman Sachs, Ameritrade, Johnson & Johnson and Coke are causing futures to increase after the big sell off yesterday.  Currently we are looking at about a 1% increase on the open.  US Bank, a mandate company met estimates for the first quarter.

CPI was released for March and was slightly below estimates as inflation continues to be absent.  With that said, US Housing starts were up 7% vs. 1.4% estimated which is a large beat.  Housing permits were lower however down 3.9% vs. 0.3% estimates.

Gold is rebounding this morning up about $35.00 to just under $1400.00.  Oil is down another 20 cents to 88.82 and the Loonie is up this morning to 97.75.

We should see some upside in Canada today in sympathy with the US increase and bargain hunters coming in and looking for deals after the sell off yesterday.  We also got February Manufacturing Data that was up 2.6% vs. 0.6% estimated.  This is a solid upside surprise for the Canadian economy.

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

www.canaccord.com