Markets driving higher by some positive news
Posted Aug 11, 2011 11:46 am.
This article is more than 5 years old.
Markets are on the rebound south of the border as both the Dow Jones and NASDAQ are making significant gains after a brutal Wednesday.
A positive report on jobless claims south of the border is one key component to the rebound according to BMO Capital Markets Senior Economist Michael Gregory.
“It fell below the important psychological level of 400,000, which suggests the labour market in the States remains weak, but it is improving” he says.
The report showed 7,000 less people applied for unemployment insurance last week, bringing the number to 395,000. The first time it’s dipped below the 400,000 mark in 14 weeks.
Gregory says another contributor was the ousting of rumours that France, the world’s fifth largest economy, was going to have its credit rating downgraded as all three major raters said they have no plans to do that.
He says those two facts appear to be over-shadowing negative trade reports in Canada and the USA, as both countries’ trade deficits increased in June.
