Market Commentary
Some POSITIVE news today...
October 16, 2012 | Posted by: Francine Tracey
Thanks to
We’ve got green across the screen this morning after a barrage of decent economic and earnings data. Factory output in the US climbed 0.4% in September, about double the average forecasted rate. Factory sales here in Canada jumped a whopping 1.5% which was higher than all estimates. Earnings at Goldman Sachs were blockbuster, beating estimates by about 25% while raising their quarterly dividend. Johnson & Johnson also beat forecasts and raised profit guidance for the year. News out of Europe is having a positive effect with an economic sentiment in Germany climbing and yields of Spanish and Italian debt falling. Italy’s 10-year bond is flirting with its lowest yield this year. The TSX is up 147 pts. The Dow is up 127 pts.
The Canadian dollar is bucking the risk-on trend, down half a cent this morning to US$1.0153 after comments yesterday by Mark Carney that has the market speculating the central bank is softening its hawkish bias. Bond yields are relatively flat at 1.34% for the 5-year Canada and 1.81% for the ten, but odds of a rate hike in the first half of next year are fading. Oil is flat at US$91.82/barrel. Gold is up $8 to US$1746/oz