Inflation in China Increases, Europe Flat, US Deficits Up

This morning we find inflation in China has crept back up to 2.5% which caused the Asian markets to sell off overnight.  On the positive side, markets in Japan were up 1.5% as the government approved a $116B(USD) stimulus package to continue to try and ignite the stagnant economy.

In Europe markets are flat this morning with no real news out of the region other than the UK Manufacturing Output numbers for December were slightly lower down 0.3%.

In North America, the Trade numbers in both Canada and US were released for December and both countries saw deficits widening.  In earnings news, Wells Fargo’s profit was up 24% from last year, however the net interest margin on loans did fall.

Ford, after increasing their dividend yesterday announced today that they are adding more than 2200 white collar jobs in the US this year to continue to improve the auto line-up.  Engineering, manufacturing and technology are the main areas that will be added to.

US futures are mixed this morning trading virtually flat currently.

Gold is off about a third of a point and oil is trading lower by about 0.75%.

Lastly, BMO released a report this morning suggesting the Canadian real estate market is in for a soft landing as we go deeper into 2013.  As I have been suggesting of late it would seem that in 2013 we will see declines across the country in real estate values.

Courtesy of:

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