The panic that hit markets in late summer seems to be abating as Europe addresses its debt crisis and monthly data indicates the United States is not falling into a second recession.
Stock markets have made up September losses and quarterly corporate profit reports are mostly strong.
The loonie is again near par and Brent crude is about $110 per barrel .
Can we hope that crop markets will not be hit again by panic washing in from the wider economy?
The relative market calm rests on tentative foundations.
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The next source of worry might be the economic health of China, the world’s second largest economy.
Its gross domestic product grew by only 9.1 percent in the third quarter, the slowest pace in more than two years.
That is still spectacular growth compared to mature economies such as Canada and the U.S., but it is a concern for China, where growth was 9.7 percent in the third quarter last year.
China actually wanted to cool its red hot economy because inflation had become a huge problem.
Markets will keenly study every economic report from the Asian giant to determine whether China’s leaders pilot to a soft landing or over steer into a real slowdown.
