Another slow start to the week as investors waited patiently on 3rd quarter earnings and additional information concerning the foreclosure problems in the banking industry.

China shocked global markets by raising their one year lending rate from 5.31% to 5.56% and the deposit rate from 2.25% to 2.5% just a week after raising reserve requirements at the largest banks. This sent global markets tumbling but the PBOC may be successful in letting the air out of a property bubble by taking a proverbial shot across the bow.

China now joins a litany of central banks across Asia who have begun a rate raising cycle aimed at shutting down the easy credit which has been prevalent over the past two years.

Strong earnings from IBM and Apple buoyed the tech sector and the markets rallied on Wednesday.

The Bank of Canada chose to hold steady with interest rates as they wait to see how the slowdown in the US plays out.

Economic statistics out of Germany indicate a stronger than expected economy. The stronger Euro does not seem to be affecting exports.

England is looking to cut approximately 8% of the public sector jobs in order to implement austerity measures.

Next Week

This weekend – G20 finance ministers and central bankers meet in Korea.

Monday – Bernanke, Dudley, and Bullard all speak

Tuesday – Riksbank meeting

Wednesday – US durable goods, Reserve Bank of New Zealand meeting, Bank of Japan target rate released

Thursday –

Friday – Japan CPI, US 3rd Q GDP, Canada 3rd Q GDP, US Chicago PMI

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