A solid overnight session in Asia as markets there reacted to the Yellen comments, the reforms in China that will promote internal growth and the Yen falling bolstering the Japanese market. China was up about 1.5% and Japan was stronger by almost 2%.
Europe is essentially flat on a broad basis as markets there continue to battle the slow pace of recovery.
US and Canadian markets after a strong rally into the close on Yellen’s comments are looking to open higher this morning by about a quarter point. Mrs. Yellen the heir apparent to replace Ben Bernanke, effectively held the dovish line yesterday indicating that there was no reason to move on tapering just yet. This quote tells the story, “It’s important not to remove support, especially when the recovery is fragile and tools available to monetary policy, should the economy falter, are limited given that short-term interest rates are at zero”.
Gold is flat this morning at 1286, oil is higher again today after a rally yesterday up 0.27 to 94.69 and the loonie is flat at 95.55. US and Canadian 10 year bonds after a rally into the news yesterday are flat this morning yielding 2.70% and 2.57% respectively.
Lastly, the Oracle of Omaha, Warren Buffett has made a big move indicating that he has taken a big position in Exxon and sold a good portion of his stake in Conoco Oil. On the negative side however, with the purchase of Heinz earlier this year, the company has decided to close the Leamington, ON plant which will cost the small town some 700 jobs. For as good as consolidation is, the down side is some do suffer in the process. Hopefully they can all find alternative employment.
|Kenneth A. Dick, BA, CIM, CFP, FCSI
Branch Manager & Portfolio Manager | Independent Wealth Management
Canaccord Genuity Wealth Management