Market Review for April 2016
– Price of gold and silver made new 52-week highs on the very last market day in April.
– Canada is one of the leading markets in 2016 and has gained about 3.5% from end of March levels mainly because of the continued increase in oil prices.
– An average price of $53 per barrel of oil means the world’s 50 biggest publicly traded companies in the industry can stop bleeding cash.
– Canadian dollar continues to strengthen vs. the U.S. dollar crossing the $0.80 at one point.
– Canada’s largest pharmaceutical company Valeant continues to be in turmoil even as significant changes are being made to its business strategy and the CEO and CFO are outgoing.
– Transcanada Corp, the country’s No. 2 pipeline operator, reported better than expected quarterly profit.
– Overall, the US economy did not have a stellar month as 1st Quarter GDP growth rose at 0.5% versus the estimated 0.7%, which is the slowest pace in the past 2 years.
– A US retail sales and jobless claims came in lower than expected.
– Despite retail sales, Ford profits surged as SUV sales hit all-time record.
– Apple posts first decline in revenue since 2007 as declining iPhone sales impact their net income.
– Uber overtakes rental cars among business travelers in North America.
– Coca-Cola profit tops estimates as new drink sizes boost sales.
– The Federal Reserve met last Wednesday. As expected there was no rate hike and the “Fed” will continue to be cautious as they consider future rate hikes.
– Puerto Rico is on the verge of defaulting on their debt obligations and putting their $3.7 trillion economy into turmoil.
– Doha oil meeting ends without agreement on capping production.
– Europe’s CDP grew by 0.6 in the first quarter versus expectation of 0.4%, but inflation was negative 0.2 in April, missing expectations.
– Europe was divided again this month as concerns about the Eurozone’s financial sector is still high.
– Germany plans $1.4 Billion in incentives for electric cars.
– Barclays posts a drop in profits on falling returns at the investment bank.
– China reported exports jumped 11.5 percent year on year, the first increase since last June and well above market forecasts.
– China’s banking regulator moves to contain a rapidly growing “shadow loans” industry.
– Mitsubishi Motors says it cheated on mileage tests for 25 years.
– Japan’s trade in surplus as imports drop for fifteenth month in a row.
– China’s March home prices rise at fastest rate in two years, top cities boom.
We continue to believe having a globally balanced portfolio with a focus on low volatility will help lower overall investment risk while having the ability to capitalize on investment opportunities.
Please do not hesitate to contact us if you have any questions or would like our team to review your investment strategy.