Market Commentary

Occasionally I like to share Meini Ickert's daily economic comment....he sums it up so nicely:

It’s been a nasty week for equity markets with the TSX down 1.3% and the S&P500 off closer to 2%. Both indexes are bobbing around the break-even point this morning with the wires almost devoid of data. The US House of Representatives managed to pass a budget yesterday with a 332-94 vote in favour. Although not anywhere close to the “grand bargain” some lawmakers were looking for, it is clearly a step in the right direction after several years of government ineptitude. Canadian household debt as a percentage of disposable income climbed to another record last quarter, which is being liberally splashed across headlines this morning. Underneath the surface, the pace of consumer debt has thankfully slowed, while growth in per-capita net worth outpaced the growth in credit. Next week brings another much-ballyhooed FOMC meeting. The TSX is off 6 pts. The Dow is up 16 pts.

 

The Canadian dollar has some bounce in its step this morning, up 31 bps to US$0.9429. Bond yields are steady at 1.83% and 2.67% for the five and ten years Canada’s respectively. Oil is down $1.14 to US$96.37/barrel after a surprise build in US inventories. Natural gas is flat at US$4.40/mbtu. Silver is up 23 cents to US$19.68/oz. Gold is up $11 to US$1235/oz.