|Equity investors appear to be shrugging off ongoing turmoil around the world as markets climb higher. News from Japan’s nuclear regulator this morning stated that there is a possibility that the failed nuclear plant’s reactor core may be cracked and leaking radiation. Cattle farmers in the region have been ordered to keep livestock from grazing on potentially contaminated pastures. In Europe, a renegotiation of the recent financing accord from the EU has somewhat deflated the European Union’s idea for a comprehensive anti-crisis strategy. Germany’s concerns over carrying the weight of debt strickened nations were heard and Angela Merkel’s demand to pare the startup capital for the emergency aid mechanism was heeded, lowering the fund’s paid in capital from 40 billion to 16 billion euros. Germany holds substantial weight in these discussions, and with Merkel’s party trailing in polls ahead of a March 27th election, the negotiations reflected the domestic political pressure being felt in Germany. In Libya, allies continue to bombard Gadhafi’s troops in an effort to put an end to the domestic military’s attack on its own people. Read More …. Equities: The Stoxx Europe 600 is headed for its best week since September of last year as SAP climbs on the back of better-than-expected forecasts from Oracle and Accenture, and construction stocks move higher as the industry makes gains in Asia. Construction stocks are also driving markets in Asia higher on optimism for orders when Japan begins to rebuild. U.S. stock-index futures are up this morning the strong forecasts from Oracle and Accenture mentioned above, however, Research in Motion disappointed investors with Q1 comments after market close yesterday.|
Commodities: Commodities are mostly higher this morning, in spite of the trade-weighed U.S dollar gaining some strength. Continuing conflict in Libya has oil sitting just below US$106 as investors remain concerned that ongoing turmoil in that region could cause more supply disruptions. Gold is also flirting with new all-time highs as adversity persists around the globe and silver is hovering around a 31-year high. Wheat and corn are up today on concerns that stockpiles could be too small to meet rising demand.
|News Headlines RIM outlook signals ‘time of transition’ Research In Motion Ltd. is about to embark on a new chapter, but it’s off to a rocky start. The Waterloo-based wireless device maker released its fiscal fourth-quarter results on Thursday, slightly beating analyst expectations. (Globe and Mail)|
HMV mulls sale of Canadian arm Struggling British music and books retailer HMV Group is looking into the possible sale of its Waterstone’s books chain and Canadian business as it seeks funds to secure its future. (Globe and Mail)
Investors signal collapse of Lundin-Inmet plan Concerns are mounting that a merger between Lundin Mining Corp. and Inmet Mining Corp. is set to collapse owing to a dispute over a setback at a flagship Inmet project in Panama that is central to the deal. (Globe and Mail)
Japan crisis threatens auto industry turnaround Shortages of critical Japanese-made components would shrink global automobile production by up to 40 per cent if idled plants in the country’s ravaged northeast fail to restart production by early May. (Globe and Mail)
Another B.C. company jumps on LNG bandwagon The growing rush to export Canada’s natural gas bounty to energy-hungry Asian markets has drawn another player to the northwestern shores of British Columbia. (Globe and Mail)
Bombardier gains China foothold for C Series sales Bombardier Inc. is tying the success of its C Series jet in the massive Chinese market to that country’s largest airplane maker, signing a deal that will help it attack the duopoly of Airbus and Boeing. (Globe and Mail)
Federal Reserve gets less reserved April 27 has become a date certain to be indelibly circled on calendars of monetary-policy wonks across the United States. It will be a day that will rank among central banking’s most momentous. For on that day, Ben Bernanke, king among central bankers and steward of the world’s most powerful financial system, will actually hold a press conference. (National Post)
Livent duo not ready to take bow Don’t expect convicted fraudster Garth Drabinsky to take a bow during opera star Placido Domingo’s upcoming performances in Toronto. (National Post)
Japan’s debt problem The Japanese economy has been thrust into the spotlight in the past week, but David MacNicol was concerned about its outlook far before the devastating 9.0 magnitude earthquake hit. (National Post)
|Economic Data |
Disclosures & Disclaimers
DWM Securities Inc. is an affiliate of The Bank of Nova Scotia, DundeeWealth Inc., and Goodman & Company, Investment Counsel Ltd.
Research Analyst Certification: Each Research Analyst involved in the preparation of this Research Report hereby certifies that: (1) the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this Research Report; and (2) his/her compensation is not and will not be directly or indirectly related to the specific recommendations or views expressed by the Research Analyst in this Research Report.
U.S. Residents: This Research Report is not intended for distribution in the United States.
This Research Report is not an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. The information contained in this Research Report is prepared from sources believed to be reliable but DWM Securities Inc. makes no representations or warranties with respect to the accuracy, correctness or completeness of such information. DWM Securities Inc. also makes no representations or warranties in respect of past or future performance of any securities discussed in this Research Report and past performance of such securities may not be repeated. DWM Securities Inc. accepts no liability whatsoever for any loss arising from any use or reliance on this Research Report or the information contained herein. Any reproduction in whole or in part of this Research Report without permission is prohibited.
DWM Securities Inc. Research is distributed by email, website or hard copy. Dissemination of initial reports and any subsequent reports is made simultaneously to a pre-determined list of DWM Securities Inc. clients and Retail Private Client offices. The policy of DWM Securities Inc. with respect to Research reports is available on the Internet at www.dundeewealth.com.
The compensation of each Research Analyst/Associate involved in the preparation of this Research Report is based upon, among other things, the overall profitability of DWM Securities Inc.
® Registered trademark of its owner, used under license.
© DWM Securities Inc.