In Asia the Chinese PMI numbers were released and were a nice surprise to the upside in regard to the services sector. However the construction industry is continuing to stagnate. Markets there were off about a point overnight.
In Europe, while we continue to see improvement across the board for a reasonable recovery in the the second half of the year, markets have sold off at midday by about 1.5% on news that Portugal is once again in trouble as 10 year bonds there broke through the 8% level yesterday. There have been some issues within the government in regard to difference of opinion on the austerity programs running in the country. Threatened resignations from a couple of ministers in the finance department have the markets concerned.
In the US lots of employment information this morning and most of it good. The ADP Private Payrolls for June were released and came in well above the estimate of 160000 at 188000. We also got Initial Weekly Jobless Claims that were just below estimates of 345000 at 343000. Both numbers suggest that the employment picture continues to improve, albeit at a slow pace. Markets are trending lower however on the world news and the unrest in Egypt. Futures are off about a quarter point, which is about half as much as when I came into the office at 7am indicating the jobs numbers have had some effect on moderating markets. The monthly employment numbers for June will be released on Friday, due to the US Independence Day holiday tomorrow.
Canadian futures are lower by about a quarter point regardless of the resource uptick.
Gold is higher by about 5 bucks to 1250, oil continues its run higher on the continued unrest in Egypt by about 1.75 to 101.25. This latest run on oil is due to the situation in Egypt which does suggest that no matter what anyone suggests self sustaining fossil fuel production makes a great deal of sense for North America as the unrest in the Middle East never seems to end. The loonie is virtually flat at 94.75.
With the US holiday tomorrow, markets to the south close at 1pm today and reopen on Friday. Also, volumes in Toronto will be light through to the end of the week.
|Kenneth A. Dick, BA, CIM, CFP, FCSI
Branch Manager & Portfolio Manager | Independent Wealth Management
Canaccord Genuity Wealth Management