By / September 20, 2012

Market Comment Markets are continuing to sell off this morning as risk aversion grips markets worldwide. Fear of a slowdown in global growth has investors again heading for the exits. US Economy at risk of Recession According to the Philly Fed state economic indices, nearly half of all US States possess a negative 6-month forward outlook (20/50). Only once in the last 30 years have 20 states had a negative outlook and the US economy… Read more

By / September 18, 2012

Market Comment Markets are continuing to sell off today after yesterday’s rout; a result of a combination of profit-taking following the rally set on by the Fed QE announcement and ongoing uncertainty from Europe. German Economic Sentiment on the Rise European equities are down 0.75% today, even as German ZEW economic sentiment rose for the first time in five months. Sentiment rose from -25.5 to -18.2, narrowly beating expectations of -19.2. The Euro has fallen… Read more

By / September 17, 2012

Market Comment Markets are quiet as we open off another week. Credit ratings agency Egan Jones downgraded the US credit rating; however, markets are shrugging off the news as EJ does not carry the same influence as S&P, Moody’s or Fitch. Markets Ignore Weak US Data The Empire Fed Manufacturing index in the US fell to the lowest level since 2009 (-10.4 vs. expectations of -1.9). Markets have ignored this data point as well as… Read more

By / September 14, 2012

Good morning, Markets are trading higher this morning; central bank actions are removing some uncertainty and we are seeing risky assets rally as a result. The Canadian dollar reached a new high overnight and is trading 25 basis points above yesterday’s close against the greenback. The US Federal Reserve announced QE3 in yesterday’s FOMC meeting, just as anticipated. The Fed will commence buying $40bn/month in mortgage backed securities (MBS) and noted if the labor market… Read more

By / September 13, 2012

Good morning, Markets are tightly range-bound this morning as investors sit on their hands awaiting the FOMC decision at 10:30am (MT) and subsequent press conference at 12:15pm (MT). The upside of a positive announcement from the Fed (announcing more stimulus/QE) appears limited as markets have priced in this action over the past few weeks. Most analysts peg the Fed’s decision as an open ended quantitative easing program at roughly $75 billion/month and a total of… Read more

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