North
American markets continue to unwind the overbought extremes reached in the wake
of the QE3 announcement. Despite the positive start to yesterday’s
trading, the session ended with one of the broadest negative tally’s since
June. Interesting to note that the Canadian banks have been pillars of strength
throughout the pullback over the last week and a half, with the big-six flat to
slightly higher over that time. Tensions in Europe are flaring again as
anti-austerity protests ramp up in Spain and Greece. Existing home sales in the
US climbed slightly in August, while mortgage applications are also climbing
amid all-time-low 30-year rates. Interesting article in USA Today about the
knock-on effects of the improving trend in US real estate with home improvement
sales being a prime example. No better evidence than shares of Home Depot which
are breaching highs last seen in 1999. The TSX is down 59 pts. The Dow is down
23 pts.
The
Canadian dollar also continues to pull back, falling 34 bps this morning to US$1.0164.
Bond yields have declined to 1.33% for the 5-year Canada and 1.77% for the ten.
Gold is down $18 to US$1748/oz. Oil is down $1.80 to US$89.52/barrel.
No comments:
Post a Comment