Positive Signals

Despite fairly high levels of uncertainty surrounding the global economy, there a some indicators that may be offering some optimism:

• Copper is one of the metals that is followed closely for indications of the future direction of the global economy:

• Since early 2011 copper has been trending lower from a high of close to 4.65.
• In January of this year it plummeted, hitting a low of approx. 2.40.
• The lowest level since 2009.
• In December of 2008 it bottomed out at near 1.25.
• It has rebounded through February back to near 2.70, a 12.5% recovery.
• It is too early to tell if this is a new trend developing, but it is worth watching.

• This morning Germany announced that unemployment fell more than was forecast in February, remaining at a 2 decade low 6.5% unemployment rate.
• Higher wages have been bolstering domestic consumption and a lower Euro has been fuelling an increase in exports as the German economy continues to expand.
• Chinese manufacturing data released yesterday showed a slight improvement.

• Closer to home, RBC surprised with strong earnings results yesterday stating that despite lower oil prices and the resulting economic headwinds, some parts of the country were experiencing stronger than expected economic conditions.

 The views expressed are those of the author, Scott Tomenson, a Raymond James Financial Advisor, and not necessarily those of Raymond James Ltd. It is provided as a general source of information only and should not be considered to be personal investment advice or a solicitation to buy or sell securities. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor's circumstances and risk tolerance before making any investment decision. The information contained in this blog was obtained from sources believed to be reliable, however, we cannot represent that it is accurate or complete. Raymond James Ltd. is a member of the Canadian Investor Protection Fund.