Global markets continue to rally on the ‘NO’ victory in the Scottish Referendum. The British Pound rallied and then sagged, but is 3 cents up from previous lows. So now the NO camp has to follow through with its promises to give Scotland greater self-governance. Light on the data today, but Greece did report Q2 unemployment declined to 26.60% compared to 27.80% for Q1. Europe rallies and overnight in Asia, major markets also gained with Nikkei up 1.60% and Shanghai up .70%. So with the financial markets breathing a sigh of relief over Scotland, U.S equity markets are building on yesterday’s gains and continue to trek into new territory. Today, light on data, Alibaba will start trading pricing its shares at the high end and looks to surge to a trading price of U$87-U$89. Amazingly, half of the shares will be owned by only 25 accounts, while retail investor got dibs on only U$1bln of the U$21.80bln raised. Also, Home depot announced the security breach was larger than originally suggested, affecting 56mln credit cards, making it bigger than last year’s Target breach. In Canada, The TSX continues to sag with commodities, energy and gold literally weighing the index down: today is indicative of the benefits of active management and diversification. Not helping today, August inflation numbers came in with CPI at 2.10% annualized, but core inflation also jumped to 2.10%, blowing through the BOC estimates of a 1.70% gain. Also; July Wholesale sales unexpectedly declined despite stronger preceding manufacturing and auto numbers. The S&P500 is up 4 to 2,015, the DOW is up 53 to 17,319 and the TSX is down 89 to 15,377. The Loonie is down 3bps to US$0.9142. Bond yields are range bound with the CDA 5-year at 1.73% and the 10-year at 2.27 %. Gold is down another U$8.50 to U$1,218/oz. Silver is down 47 cents to US$18.05/oz, natural gas is down 6 cents to U$3.91 /btu, copper is flat at U$3.09 and Oil is down 57 cents to U$90.82/barrel Have a great weekend!
Posted on: Fri, 19 Sep 2014 17:03:41 +0000
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