Some decent upside in China overnight on the back of the US markets upside move yesterday. Japan on the other hand fell about 2% due to the an increase in Sales Tax.
Mario Draghi speaking this morning is suggesting that the Euro recovery is continuing albeit at a slow pace. He is confident the trend will continue and will do all he can to maintain or increase the current pace. With all that said he left rates alone at 0.5% which caused some weakness in markets there. The big index is down about a half a point. Also, our Italian friends have done another about face today as the coalition members governing the country have now decided to continue on as they were. On Monday if you recall, the coalition was dissolving which would have led to another election. It would seem that the Italian people were not having any of that and the government listened. Hmmmm, make you think of a certain government to the south of us that may take some notice of the peoples demands over their own posturing?
The US futures are off about a half a point on the ADP Employment numbers which came in at 166000 vs. 180000 estimated for September. Also August was revised lower. These numbers will play into the Non-Farm Payrolls for September which are scheduled to be released (maybe) Friday. I say maybe as one of the government agencies that has been shut down is the Bureau of Statistics. Hopefully the work had been completed before Monday.
Canada is following the US lead and trending down about a half a point.
Gold is up about 14.00 to 1300.00, oil is off 7 cents to 101.63 and the loonie is down 13 bps to 96.69. Debt markets are rallying into the employment numbers with the US and Canadian 10 year bonds yielding 2.63% and 2.54% respectively.
|Kenneth A. Dick, BA, CIM, CFP, FCSI
Branch Manager & Portfolio Manager | Independent Wealth Management
Canaccord Genuity Wealth Management