July 17th, 2013 Business & Market Update

Today is the day of central bankers as Mark Carney – BOE Governor, Stephen Poloz – BOC Governor and Ben Bernanke – FOMC Head all are providing guidance on monetary policy for each of their respective countries.  Carney has already made his comments and basically is leaving the current asset buying program and interest rates as is.  Poloz and Bernanke are due to speak later this morning and I would suggest that Poloz will do nothing and Bernanke will continue to put the clarify the tapering program parameters (employment levels, inflation levels etc.).  His testimony to congress starts at 10am EDT however the minutes of the speech have been released.  Highlights of the speech, the US economy is still vulnerable to outside shocks (Europe, China etc.), employment is far from satisfactory and bond purchases are not on a pre-set course.  Markets did not move substantially on the remarks but did move slightly higher.

Staying with the US, Housing Starts and Permits both missed by large margins in June which most of which is attributed to the increase in mortgage rates, the weather and supply issues in the South.

In earnings news, mandate companies Mattel and US Bank reported this morning. Mattel missed in both earnings and revenue while US Bank beat on earnings and missed on revenue.

In Asia overnight markets were mixed with China down about a point and Japan flat.

Canadian markets are poised to open higher by about a half a point anticipating no change to the BOC policy position.

Gold is up a couple of points to 1294, oil is higher by 9 cents to 105.77 and the loonie is flat at 96.30.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

http://www.canaccord.com/