Canadians Better Off, Even If They Don't Feel It.
Canada loses bragging rights on jobs.
* TSX +27.38 to 13,437.58
* DOW -166.13 to 11,823.70
* Dollar -.79c to 99.89c USD
* Oil +$3.70 to $89.34 USD per barrel
* Gold +$22.30 to $1340.700 per ounce
* Canadian 5 yr bond yields markets -.03bps to 2.49. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) has moved to the high end of the comfort zone at 1.50.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Monday, January 31, 2011
Friday, January 28, 2011
Financial Update: January 28, 2011
Migration at 20-year high
"...it’s an expression of a labour market that’s healing after a pretty severe recession,”
Bank of Canada urged to cut inflation target further
Should the Bank of Canada tinker with success?
· TSX -55.55 to 13,410.21 as oil and bullion posted steep declines.
· DOW +4.39 to 11,989.83
· Dollar +.21c to 100.68c USD despite sharply lower oil prices as the greenback lost ground against the Euro and Pound but gained against the yen after credit ratings agency Standard & Poor’s downgraded its view of Japan ’s debt from AA to AA-
· Oil -$1.69 to $85.64 USD per barrel
· Gold -$14.60 to $1318.40 per ounce
· Canadian 5 yr bond yields markets -.04bps to 2.52. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is now centred in the comfort zone at 1.47.
(courtesy of Barb Morgan, DBD Ontario Southwest)
"...it’s an expression of a labour market that’s healing after a pretty severe recession,”
Bank of Canada urged to cut inflation target further
Should the Bank of Canada tinker with success?
· TSX -55.55 to 13,410.21 as oil and bullion posted steep declines.
· DOW +4.39 to 11,989.83
· Dollar +.21c to 100.68c USD despite sharply lower oil prices as the greenback lost ground against the Euro and Pound but gained against the yen after credit ratings agency Standard & Poor’s downgraded its view of Japan ’s debt from AA to AA-
· Oil -$1.69 to $85.64 USD per barrel
· Gold -$14.60 to $1318.40 per ounce
· Canadian 5 yr bond yields markets -.04bps to 2.52. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is now centred in the comfort zone at 1.47.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Thursday, January 27, 2011
Financial Update: January 27, 2011
Three million Canadian cash in on home reno tax credit, short of target.
Message heard? Canadian household debt growth slowing -Tal says “new rules will curtail new mortgage credit by between two and three per cent over the next 12 months”.
* TSX +206.12 to 13,465.75 up sharply as commodity prices stabilized and mining and energy stocks made big strides.
* DOW +8.25 to 11,985.44 as investors largely shrugged of weak earnings reports. Instead, investors focused on the Fed announcement and on President Barack Obama 's call to overhaul corporate taxes.
* Dollar +.23c to 100.47c USD as the U.S. dollar weakened against other major currencies after the Federal Reserve announced Wednesday afternoon that it was still concerned about the U.S. economy and planned to hold the line on interests rates for some time to come.
* Oil +$1.14 to $87.33 USD per barrel
* Gold +$.70 to $1333.00 per ounce
Canadian 5 yr bond yields markets +.01bps to 2.56. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is now centred in the comfort zone at 1.43.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Message heard? Canadian household debt growth slowing -Tal says “new rules will curtail new mortgage credit by between two and three per cent over the next 12 months”.
* TSX +206.12 to 13,465.75 up sharply as commodity prices stabilized and mining and energy stocks made big strides.
* DOW +8.25 to 11,985.44 as investors largely shrugged of weak earnings reports. Instead, investors focused on the Fed announcement and on President Barack Obama 's call to overhaul corporate taxes.
* Dollar +.23c to 100.47c USD as the U.S. dollar weakened against other major currencies after the Federal Reserve announced Wednesday afternoon that it was still concerned about the U.S. economy and planned to hold the line on interests rates for some time to come.
* Oil +$1.14 to $87.33 USD per barrel
* Gold +$.70 to $1333.00 per ounce
Canadian 5 yr bond yields markets +.01bps to 2.56. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is now centred in the comfort zone at 1.43.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Wednesday, January 26, 2011
Financial Update: January 26, 2011
Canadian, U.S. consumers more hopeful about jobs, finances, purchases
The power of Facebook’s 'Like' button
Liking it isn’t about enjoying it or appreciating it. “Liking something is about allowing that particular thing to be a part of your network."
· TSX -87.95 to 13,259.63 amid weakening commodity prices and mixed earnings reports from U.S. and Canadian companies.
· DOW-3.3 to 11,980.52
· Dollar -.30c to 100.24c USD on lower commodity prices and data that showed inflation has been weaker than expected.
· Oil -$1.68 to $86.19 USD per barrel on speculation that Saudi Arabia and other OPEC countries will step up production, along with India's decision to raise interest rates, a move that could slow demand.
· Gold -$12.20 to $1332.30 per ounce while lower commodity prices are taking a big toll on the Toronto market, lower gold prices are a double edged sword because they signal more confidence in improving global market conditions.
Canadian 5 yr bond yields markets -.04bps to 2.55. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is now centred in the comfort zone at 1.44. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(courtesy of Barb Morgan, DBD Ontario SouthWest)
The power of Facebook’s 'Like' button
Liking it isn’t about enjoying it or appreciating it. “Liking something is about allowing that particular thing to be a part of your network."
· TSX -87.95 to 13,259.63 amid weakening commodity prices and mixed earnings reports from U.S. and Canadian companies.
· DOW-3.3 to 11,980.52
· Dollar -.30c to 100.24c USD on lower commodity prices and data that showed inflation has been weaker than expected.
· Oil -$1.68 to $86.19 USD per barrel on speculation that Saudi Arabia and other OPEC countries will step up production, along with India's decision to raise interest rates, a move that could slow demand.
· Gold -$12.20 to $1332.30 per ounce while lower commodity prices are taking a big toll on the Toronto market, lower gold prices are a double edged sword because they signal more confidence in improving global market conditions.
Canadian 5 yr bond yields markets -.04bps to 2.55. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is now centred in the comfort zone at 1.44. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(courtesy of Barb Morgan, DBD Ontario SouthWest)
Tuesday, January 25, 2011
Financial Update: January 25, 2011
IMF boosts global outlook and downgrades outlook for Canadian GDP
http://www.financialpost.com/news/Canada+growth/4158929/story.html
(See below for an explanation of GDP and CPI).
· TSX +89.01 to 13,347.58 The Bond yield watch is on! Traders are looking ahead to the release of Canadian consumer price index (CPI) data on Tuesday, which is expected to show the annual inflation rate climbed to 2.5 percent in December, while price increases excluding food and energy costs were more subdued. The report could offer hints on whether the Bank of Canada, mandated to keep inflation at the midpoint of a 1 to 3 percent range, is likely to push back or bring forward rate hikes.
· DOW +108.68 to 11,980.52
· Dollar +.08c to 100.54c USD as a lack of drivers kept trading light ahead of a slew of key economic news later this week.
· Oil -$1.24 to $89.87 USD per barrel
· Gold +$3.50 to $1344.50 per ounce
Canadian 5 yr bond yields markets -.01bps to 2.59. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is now in the lower end of the comfort zone at 1.40.
http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
What is Consumer Price Index?
The Consumer Price Index (CPI) is an indicator of changes in consumer prices experienced by Canadians. It is obtained by comparing through time, the cost of a fixed basket of commodities purchased by consumers. Since the basket contains commodities of unchanging or equivalent quantity and quality, the index reflects only pure price change
What is GDP and why is it so important?
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year.
Measuring GDP is complicated (which is why we leave it to the economists), but at its most basic, the calculation can be done in one of two ways: either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). Logically, both measures should arrive at roughly the same total.
The income approach, which is sometimes referred to as GDP(I), is calculated by adding up total compensation to employees, gross profits for incorporated and non incorporated firms, and taxes less any subsidies. The expenditure method is the more common approach and is calculated by adding total consumption, investment, government spending and net exports.
As one can imagine, economic production and growth, what GDP represents, has a large impact on nearly everyone within that economy. For example, when the economy is healthy, you will typically see low unemployment and wage increases as businesses demand labor to meet the growing economy. A significant change in GDP, whether up or down, usually has a significant effect on the stock market. It's not hard to understand why: a bad economy usually means lower profits for companies, which in turn means lower stock prices. Investors really worry about negative GDP growth, which is one of the factors economists use to determine whether an economy is in a recession.
GDP = C + G + I + NX
where:
"C" is equal to all private consumption, or consumer spending, in a nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)
(courtesy of Barb Morgan, DBD Ontario SouthWest)
http://www.financialpost.com/news/Canada+growth/4158929/story.html
(See below for an explanation of GDP and CPI).
· TSX +89.01 to 13,347.58 The Bond yield watch is on! Traders are looking ahead to the release of Canadian consumer price index (CPI) data on Tuesday, which is expected to show the annual inflation rate climbed to 2.5 percent in December, while price increases excluding food and energy costs were more subdued. The report could offer hints on whether the Bank of Canada, mandated to keep inflation at the midpoint of a 1 to 3 percent range, is likely to push back or bring forward rate hikes.
· DOW +108.68 to 11,980.52
· Dollar +.08c to 100.54c USD as a lack of drivers kept trading light ahead of a slew of key economic news later this week.
· Oil -$1.24 to $89.87 USD per barrel
· Gold +$3.50 to $1344.50 per ounce
Canadian 5 yr bond yields markets -.01bps to 2.59. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is now in the lower end of the comfort zone at 1.40.
http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
What is Consumer Price Index?
The Consumer Price Index (CPI) is an indicator of changes in consumer prices experienced by Canadians. It is obtained by comparing through time, the cost of a fixed basket of commodities purchased by consumers. Since the basket contains commodities of unchanging or equivalent quantity and quality, the index reflects only pure price change
What is GDP and why is it so important?
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year.
Measuring GDP is complicated (which is why we leave it to the economists), but at its most basic, the calculation can be done in one of two ways: either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). Logically, both measures should arrive at roughly the same total.
The income approach, which is sometimes referred to as GDP(I), is calculated by adding up total compensation to employees, gross profits for incorporated and non incorporated firms, and taxes less any subsidies. The expenditure method is the more common approach and is calculated by adding total consumption, investment, government spending and net exports.
As one can imagine, economic production and growth, what GDP represents, has a large impact on nearly everyone within that economy. For example, when the economy is healthy, you will typically see low unemployment and wage increases as businesses demand labor to meet the growing economy. A significant change in GDP, whether up or down, usually has a significant effect on the stock market. It's not hard to understand why: a bad economy usually means lower profits for companies, which in turn means lower stock prices. Investors really worry about negative GDP growth, which is one of the factors economists use to determine whether an economy is in a recession.
GDP = C + G + I + NX
where:
"C" is equal to all private consumption, or consumer spending, in a nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)
(courtesy of Barb Morgan, DBD Ontario SouthWest)
Monday, January 24, 2011
Financial Update: January 24, 2011
Tighter mortgage rules may yet save us from ourselves:
A different perspective on the new changes to the mortgage industry, that might assist you in explaining the “why” to your clients.
http://www.edmontonjournal.com/business/Tighter+mortgage+rules+save+from+ourselves/4142963/story.html#ixzz1Bh9tE9rF
Consumers continue to buck up Canadian economy as retail sales jump:
http://ca.finance.yahoo.com/news/Consumers-continue-buck-capress-1176055459.html?x=0
* TSX -72.75 to 13,258.57 led by losses in the tech sector
* DOW +49.04 to 11,871.84
* Dollar +.17c to 100.46c USD The perky retail sales numbers helped push the Canadian dollar up
* Oil -$.48 to $89.11 USD per barrel It was a second day of losses in the mining sector after news that fourth-quarter economic growth in China was stronger than expected, raising fresh concerns that monetary authorities there may have to do more to cool that country's economy to ease inflationary pressures. That, in turn, tends to weigh on commodity prices amid concerns that a slowing economy will affect demand for oil and metals
* Gold -$5.50 to $1341.00 per ounce
Canadian 5 yr bond yields markets +.03bps to 2.60. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is now in the lower end of the comfort zone at 1.39. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(Courtesy of Barb Morgan, DB Ontario Southwest)
A different perspective on the new changes to the mortgage industry, that might assist you in explaining the “why” to your clients.
http://www.edmontonjournal.com/business/Tighter+mortgage+rules+save+from+ourselves/4142963/story.html#ixzz1Bh9tE9rF
Consumers continue to buck up Canadian economy as retail sales jump:
http://ca.finance.yahoo.com/news/Consumers-continue-buck-capress-1176055459.html?x=0
* TSX -72.75 to 13,258.57 led by losses in the tech sector
* DOW +49.04 to 11,871.84
* Dollar +.17c to 100.46c USD The perky retail sales numbers helped push the Canadian dollar up
* Oil -$.48 to $89.11 USD per barrel It was a second day of losses in the mining sector after news that fourth-quarter economic growth in China was stronger than expected, raising fresh concerns that monetary authorities there may have to do more to cool that country's economy to ease inflationary pressures. That, in turn, tends to weigh on commodity prices amid concerns that a slowing economy will affect demand for oil and metals
* Gold -$5.50 to $1341.00 per ounce
Canadian 5 yr bond yields markets +.03bps to 2.60. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is now in the lower end of the comfort zone at 1.39. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(Courtesy of Barb Morgan, DB Ontario Southwest)
Friday, January 21, 2011
Financial Update: January 21, 2011
U.S. home sales hit low (in 2010):
However job growth is expected to double in 2011, a precursor to a housing recovery. Economists predict it will take two more years to reach a healthy level of 6 million units sold given the employment rate and the glut of foreclosures expected to hit in 2011.
http://www.canadianbusiness.com
* TSX -107.72 to 13,331.32 as commodity prices retreated amid fears China will make further moves to slow its economy to deal with inflation after news the economy grew by 9.8% in the 4th quarter, up from the previous quarter. As a result, market participants are expecting China to start to cool off the rate of growth that they have had.
* DOW-2.49 to 11,822.80
* Dollar -.16c to 100.29c USD With household debt worryingly high, considerable monetary policy stimulus in place, federal mortgage initiatives, and the Bank of Canada musing on ‘stretched household balance sheets,’ it is clear that rates in Canada are too low and are going to rise, just not in Q1, and not unconditionally.” Says David Watt with RBC Capital Markets
* Oil -$2.00 to $88.86 USD per barrel Roger McKnight Sr. petroleum analyst warned Canadian consumers to brace for higher gasoline prices in February or March. "The price of crude right now is 14 to 15 per cent higher than it was a year ago for absolutely no reason whatsoever, other than people are guessing that the U.S. economy is going to turn around, which will increase demand.. It should be at $80 a barrel”
* Gold -$23.70 to $1346.50 per ounce
Canadian 5 yr bond yields markets +.05bps to 2.57. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is bouncing about in mid comfort zone at 1.42.
http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(courtesy of Barb Morgan, DBD Ontario SouthWest)
However job growth is expected to double in 2011, a precursor to a housing recovery. Economists predict it will take two more years to reach a healthy level of 6 million units sold given the employment rate and the glut of foreclosures expected to hit in 2011.
http://www.canadianbusiness.com
* TSX -107.72 to 13,331.32 as commodity prices retreated amid fears China will make further moves to slow its economy to deal with inflation after news the economy grew by 9.8% in the 4th quarter, up from the previous quarter. As a result, market participants are expecting China to start to cool off the rate of growth that they have had.
* DOW-2.49 to 11,822.80
* Dollar -.16c to 100.29c USD With household debt worryingly high, considerable monetary policy stimulus in place, federal mortgage initiatives, and the Bank of Canada musing on ‘stretched household balance sheets,’ it is clear that rates in Canada are too low and are going to rise, just not in Q1, and not unconditionally.” Says David Watt with RBC Capital Markets
* Oil -$2.00 to $88.86 USD per barrel Roger McKnight Sr. petroleum analyst warned Canadian consumers to brace for higher gasoline prices in February or March. "The price of crude right now is 14 to 15 per cent higher than it was a year ago for absolutely no reason whatsoever, other than people are guessing that the U.S. economy is going to turn around, which will increase demand.. It should be at $80 a barrel”
* Gold -$23.70 to $1346.50 per ounce
Canadian 5 yr bond yields markets +.05bps to 2.57. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is bouncing about in mid comfort zone at 1.42.
http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(courtesy of Barb Morgan, DBD Ontario SouthWest)
Thursday, January 20, 2011
Financial Update: January 20, 2011
- TSX -120.16 to 13,439.04 as copper prices retreated from record levels while investors considered a mixed bag of U.S. earnings reports.
- DOW-12.64 to 11,825.29
- Dollar -.27c to 100.45c USD as new data showed a surprising decline in the manufacturing sector late last year. Stats Can reported that manufacturing sales declined 0.8 per cent in November, led by decreases in the motor vehicle and motor vehicle parts industries. Economists had expected an increase of 0.5 per cent.
- Oil -$.52 to $90.86 USD per barrel
- Gold +$2.00 to $1370.20 per ounce
Canadian 5 yr bond yields markets -.05bps to 2.52. The spread (based on the MERIX 5 yr rate published rate of 3.99%) is bouncing about in mid comfort zone at 1.47. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(Courtesy of Barb Morgan, DBD Ontario Southwest)
Wednesday, January 19, 2011
Financial Update: January 19, 2011
5 Secrets of Successful Savers
http://ca.finance.yahoo.com/news/5-Secrets-of-Successful-usnews-3282300041.html
What's affecting your credit score?
http://www.financialpost.com/personal-finance/What+affecting+your+credit+score/4126038/story.html#ixzz1BTyII8NL
* TSX +119.09 to 13,559.20 its highest close since late August, 2008 as a weak U.S.dollar helped lift commodity prices while investors also took in a decision by the Bank of Canada to leave its key interest rate unchanged at one per cent.
* DOW +50.55 to 11,837.93 US Stock markets also rose amid hopes that eurozone countries are planning to strengthen and broaden their measures to fight the debt crisis. Ministers from the 17 countries that use the euro met in Brussels and discussed boosting the size and powers of the region’s bailout fund.
* Dollar -.58c to 100.72c USD as the central bank also raised its 2011 growth forecast to 2.4 per cent from 2.3 per cent. Economists expect the central bank to resume hiking its rates this year. But the communiqué from the bank signalled that it won't be moving until around the middle of 2011 at the earliest.
* Oil -$.16 to $91.38 USD per barrel
* Gold +$7.70 to $1368.20 per ounce
Canadian 5 yr bond yields +.02bps to 2.57. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is bouncing about in mid comfort zone at 1.42. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(Courtesy of Barb Morgan, DBD Ontario Southwest)
http://ca.finance.yahoo.com/news/5-Secrets-of-Successful-usnews-3282300041.html
What's affecting your credit score?
http://www.financialpost.com/personal-finance/What+affecting+your+credit+score/4126038/story.html#ixzz1BTyII8NL
* TSX +119.09 to 13,559.20 its highest close since late August, 2008 as a weak U.S.dollar helped lift commodity prices while investors also took in a decision by the Bank of Canada to leave its key interest rate unchanged at one per cent.
* DOW +50.55 to 11,837.93 US Stock markets also rose amid hopes that eurozone countries are planning to strengthen and broaden their measures to fight the debt crisis. Ministers from the 17 countries that use the euro met in Brussels and discussed boosting the size and powers of the region’s bailout fund.
* Dollar -.58c to 100.72c USD as the central bank also raised its 2011 growth forecast to 2.4 per cent from 2.3 per cent. Economists expect the central bank to resume hiking its rates this year. But the communiqué from the bank signalled that it won't be moving until around the middle of 2011 at the earliest.
* Oil -$.16 to $91.38 USD per barrel
* Gold +$7.70 to $1368.20 per ounce
Canadian 5 yr bond yields +.02bps to 2.57. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is bouncing about in mid comfort zone at 1.42. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(Courtesy of Barb Morgan, DBD Ontario Southwest)
Tuesday, January 18, 2011
Financial Update: January 18, 2011
Streamline updates to enhance your digital presence
http://www.theglobeandmail.com/report-on-business/managing/on-the-job/streamline-updates-to-enhance-your-digital-presence/article1869362/
Use tools that let you do the changes once and have the revisions changed automatically on all your other social media sites.
· TSX -23.95 to 13,440.11 while traders considered how bank stocks might be affected by moves by Ottawa to curb excessive borrowing on homes.
· DOW closed for Martin Luther King Day to 11,787.38
· Dollar +.23c to 101.30c USD
· Oil -$.51 to $91.03 USD per barrel in the wake of China’s order on Friday to state-owned banks to set aside an additional 0.5 per cent of deposits as reserves in order to curb inflation. It was the seventh time in a year that the reserve rate has been hiked.
· Gold +$.70 to $1361.20 per ounce
Canadian 5 yr bond yields markets -.01bps to 2.55. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is mid comfort zone at 1.44.
http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(Courtesy of Barb Morgan, DBD Ontario SouthWest)
http://www.theglobeandmail.com/report-on-business/managing/on-the-job/streamline-updates-to-enhance-your-digital-presence/article1869362/
Use tools that let you do the changes once and have the revisions changed automatically on all your other social media sites.
· TSX -23.95 to 13,440.11 while traders considered how bank stocks might be affected by moves by Ottawa to curb excessive borrowing on homes.
· DOW closed for Martin Luther King Day to 11,787.38
· Dollar +.23c to 101.30c USD
· Oil -$.51 to $91.03 USD per barrel in the wake of China’s order on Friday to state-owned banks to set aside an additional 0.5 per cent of deposits as reserves in order to curb inflation. It was the seventh time in a year that the reserve rate has been hiked.
· Gold +$.70 to $1361.20 per ounce
Canadian 5 yr bond yields markets -.01bps to 2.55. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is mid comfort zone at 1.44.
http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(Courtesy of Barb Morgan, DBD Ontario SouthWest)
Monday, January 17, 2011
Financial Update: January 17, 2011
Canadian Dollar Looks to BoC Interest Rate Decision for Direction:
http://www.dailyfx.com/forex/fundamental/forecast/weekly/cad/2011/01/14/Canadian_Dollar_Looks_to_BoC_Interest_Rate_Decision_For_Direction.html
The Harper Government Takes Prudent Action to Support the Long-Term Stability of Canada’s Housing Market
http://www.fin.gc.ca/n11/11-003-eng.asp
· TSX +62.58 to 13,464.06 financial stocks led the way to a positive close on the Toronto stock market following a strong earnings report from U.S. bank JPMorgan Chase. However the resource-heavy TSX was held back by sliding mining stocks as China moved to slow its economy and rein in inflation by again raising the amount of money banks must keep in reserve. The move raised worries about the demand for commodities.
· DOW +55.48 to 11,787.38
· Dollar -.24c to 101.09c USD closed slightly lower as gold prices slid and traders reacted to the latest moves by China to slow its economy and control rising inflation. It has ordered state-owned banks to set aside an additional 0.5 per cent of deposits as reserves, effective Jan. 20. Reserves vary by institution but could be close to 20 per cent for the biggest commercial lenders. This is viewed as a negative because it will slow down growth and reduce demand for goods and services
· Oil +$.14 to $91.54 USD per barrel Oil prices settled higher after government reports suggested that the U.S. economy is gaining strength.
· Gold -$26.50 to $1360.50 per ounce The gold sector led declines as easing concerns about European sovereign debt problems helped push gold down
Canadian 5 yr bond yields markets +.02bps to 2.56. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is mid comfort zone at 1.43. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
** The definition of hawkish is this: it is an aggressive stance. Just as a hawk is aggressive in hunting its prey, being hawkish relates to the aggressive stance taken with regard to the topic. For example, if there is a threat of high inflation, to describe the reserve bank of a country being hawkish in any official statement may mean they are leaning towards a stronger action such as favouring an increase in interest rates to dampen high inflation. The antonym (opposite) to hawkish is dovish and would provide a meek and mild statement.
(Courtesy of Barb Morgan, DBD Ontario SouthWest)
http://www.dailyfx.com/forex/fundamental/forecast/weekly/cad/2011/01/14/Canadian_Dollar_Looks_to_BoC_Interest_Rate_Decision_For_Direction.html
The Harper Government Takes Prudent Action to Support the Long-Term Stability of Canada’s Housing Market
http://www.fin.gc.ca/n11/11-003-eng.asp
· TSX +62.58 to 13,464.06 financial stocks led the way to a positive close on the Toronto stock market following a strong earnings report from U.S. bank JPMorgan Chase. However the resource-heavy TSX was held back by sliding mining stocks as China moved to slow its economy and rein in inflation by again raising the amount of money banks must keep in reserve. The move raised worries about the demand for commodities.
· DOW +55.48 to 11,787.38
· Dollar -.24c to 101.09c USD closed slightly lower as gold prices slid and traders reacted to the latest moves by China to slow its economy and control rising inflation. It has ordered state-owned banks to set aside an additional 0.5 per cent of deposits as reserves, effective Jan. 20. Reserves vary by institution but could be close to 20 per cent for the biggest commercial lenders. This is viewed as a negative because it will slow down growth and reduce demand for goods and services
· Oil +$.14 to $91.54 USD per barrel Oil prices settled higher after government reports suggested that the U.S. economy is gaining strength.
· Gold -$26.50 to $1360.50 per ounce The gold sector led declines as easing concerns about European sovereign debt problems helped push gold down
Canadian 5 yr bond yields markets +.02bps to 2.56. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is mid comfort zone at 1.43. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
** The definition of hawkish is this: it is an aggressive stance. Just as a hawk is aggressive in hunting its prey, being hawkish relates to the aggressive stance taken with regard to the topic. For example, if there is a threat of high inflation, to describe the reserve bank of a country being hawkish in any official statement may mean they are leaning towards a stronger action such as favouring an increase in interest rates to dampen high inflation. The antonym (opposite) to hawkish is dovish and would provide a meek and mild statement.
(Courtesy of Barb Morgan, DBD Ontario SouthWest)
Friday, January 14, 2011
Financial Update: January 14, 2011
- TSX -58.73 to 13,401.48
- DOW -23.54 to 11,755.44 A successful Spanish bond auction provided some reassurance about Europe’s debt crisis, following Portugal’s successful bond auction Wednesday. Italy also successfully raised the money it was looking for in the bond markets.
- Dollar -.24c to 101.09c USD amid lower commodity prices and data that showed Canada's trade deficit shrank dramatically in November.
- Oil -$.46 to $91.40 USD per barrel as oil started moving on a limited basis through the Trans-Alaskan pipeline Wednesday.
- Gold +$1.20 to $1387 per ounce
Canadian 5 yr bond yields markets +.01bps to 2.54. The spread (based on the MERIX 5 yr published rate of 3.99%) is mid comfort zone at 1.45. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
Statistics Canada reported Thursday that Canada’s trade deficit with the rest of the world narrowed to $81 million in November from $1.5 billion in October
The Bank of England announced it would keep its base interest rate at a record low of 0.5 per cent and again ruled out any further investment in economic stimulus.
And the European Central Bank left its main interest rate unchanged at one per cent Thursday for the 20th consecutive month.
Data on Thursday also showed weekly initial jobless claims in the United States jumped to their highest level since October last week. Additionally, U.S. lenders repossessed 1 million homes last year. Over 5 million borrowers are at least 2 months behind on their mortgage payments.
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