Businesses make Facebook a marketing network...
Every day, an average of about 15 million connections are made between users “friending” each other. Meanwhile, about 50 million connections are made between businesses and users, who have no qualms announcing they’re a “fan” of company X. How many fans does your company have?
* TSX +10.02 to 14,039.39 Energy pushed the Toronto stock market higher.
* DOW +50.03 to 12,220.59 U.S. markets also advanced amid data showing the economy grew a little faster at the end of 2010 than the government had previously estimated, boosted by more inventory building and business investment in plants and equipment.
* Dollar -.58c to 101.86c USD A stronger U.S. dollar pushed the Canadian currency lower.
* Oil -$.20 to $105.40USD per barrel
* Gold -$8.70 to $1426.10 per ounce
* Canadian 5 yr bond yields markets +.04bps to 2.65. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the centre of the comfort zone at 1.39.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Monday, March 28, 2011
Friday, March 25, 2011
Financial Update: March 25, 2011
Carpe ver! Seize the spring and clean up your budget!
(a helpful list for your newsletters and blogs)
For U.S. housing, a new collapse...
“A lot of people may be carried out feet first before the house is worth what they paid for it.” Another reminder of how fortunate Canadians are to have maintained a strong housing market.
· TSX -57.81 to 14,087.18 as energy and mining stocks fell alongside prices for oil and gold amid a huge wall of worry with ongoing serious challenges to the global economy, including Japan ’s struggle to contain a nuclear crisis caused by the Mar. 11 earthquake, Portugal’s unresolved financial problems and uprisings in the Middle East.
· DOW +85.54 to 12,170.56 rose on stronger corporate earnings and hopes that the job market may be improving as the Labor Department said fewer Americans applied for unemployment benefits last week, indicating that employers could be expanding their work forces.
· Dollar +.47c to 102.44c USD
· Oil -$.15 to $105.60USD per barrel amid a surprise new oil windfall tax in Britain. The British government plans to levy a new tax on oil companies’ profits worth two billion pounds ($3.2 billion) and in return will lower the country’s gas tax by a penny a litre
· Gold -$3.10 to $1434.90 per ounce
· Canadian 5 yr bond yields markets +.03bps to 2.61. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the centre of the comfort zone at 1.43.
(courtesy of Barb Morgan, DBD Ontario Southwest)
(a helpful list for your newsletters and blogs)
For U.S. housing, a new collapse...
“A lot of people may be carried out feet first before the house is worth what they paid for it.” Another reminder of how fortunate Canadians are to have maintained a strong housing market.
· TSX -57.81 to 14,087.18 as energy and mining stocks fell alongside prices for oil and gold amid a huge wall of worry with ongoing serious challenges to the global economy, including Japan ’s struggle to contain a nuclear crisis caused by the Mar. 11 earthquake, Portugal’s unresolved financial problems and uprisings in the Middle East.
· DOW +85.54 to 12,170.56 rose on stronger corporate earnings and hopes that the job market may be improving as the Labor Department said fewer Americans applied for unemployment benefits last week, indicating that employers could be expanding their work forces.
· Dollar +.47c to 102.44c USD
· Oil -$.15 to $105.60USD per barrel amid a surprise new oil windfall tax in Britain. The British government plans to levy a new tax on oil companies’ profits worth two billion pounds ($3.2 billion) and in return will lower the country’s gas tax by a penny a litre
· Gold -$3.10 to $1434.90 per ounce
· Canadian 5 yr bond yields markets +.03bps to 2.61. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the centre of the comfort zone at 1.43.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Thursday, March 24, 2011
Financial Update: March 24, 2011
Home-buying help in your pocket...
There are even mobile apps to help buy, sell or renovate a home
· TSX +87.18 to 14,087.18 led by mining stocks as copper prices rallied and gold hit another record high
· DOW +14.43 to 12,086.02 New York markets were also higher despite more dismal news from the housing sector. The U.S. Commerce Department says that buyers of new homes plunged in February to the fewest on records dating back nearly half a century. Sales fell 16.9 per cent to a seasonally adjusted annual rate of 250,000 homes while the median price of a new home dropped nearly 14 per cent to US$202,100.
· Dollar -.08c to 101.97c USD closed lower against the American currency amid higher oil prices and the likelihood of a spring federal election after all three opposition parties immediately rejected Finance Minister Jim Flaherty’s new budget. Oil prices will continue to be the most important driver for the Canadian dollar. The US dollar was higher as Europe’s debt market jitters flared up again Wednesday on the eve of a summit where EU leaders plan to complete their crisis-fighting plan, as investors worried particularly about the near-term fates of Portugal and Ireland
· Oil +$.78 to $105.75USD per barrel as unrest in the Middle East keeps traders nervous about possible crude supply disruptions. Oil has jumped 24% since Feb 14.
· Gold +$10.40 to $1438.00 per ounce hitting a fresh record high
· Canadian 5 yr bond yields markets +.01bps to 2.58. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the centre of the comfort zone at 1.46
(courtesy of Barb Morgan, DBD Ontario Southwest)
There are even mobile apps to help buy, sell or renovate a home
· TSX +87.18 to 14,087.18 led by mining stocks as copper prices rallied and gold hit another record high
· DOW +14.43 to 12,086.02 New York markets were also higher despite more dismal news from the housing sector. The U.S. Commerce Department says that buyers of new homes plunged in February to the fewest on records dating back nearly half a century. Sales fell 16.9 per cent to a seasonally adjusted annual rate of 250,000 homes while the median price of a new home dropped nearly 14 per cent to US$202,100.
· Dollar -.08c to 101.97c USD closed lower against the American currency amid higher oil prices and the likelihood of a spring federal election after all three opposition parties immediately rejected Finance Minister Jim Flaherty’s new budget. Oil prices will continue to be the most important driver for the Canadian dollar. The US dollar was higher as Europe’s debt market jitters flared up again Wednesday on the eve of a summit where EU leaders plan to complete their crisis-fighting plan, as investors worried particularly about the near-term fates of Portugal and Ireland
· Oil +$.78 to $105.75USD per barrel as unrest in the Middle East keeps traders nervous about possible crude supply disruptions. Oil has jumped 24% since Feb 14.
· Gold +$10.40 to $1438.00 per ounce hitting a fresh record high
· Canadian 5 yr bond yields markets +.01bps to 2.58. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the centre of the comfort zone at 1.46
(courtesy of Barb Morgan, DBD Ontario Southwest)
Wednesday, March 23, 2011
Financial Update: March 23, 2011
Economy pours tax dollars into rosy budget blueprint...
Thanks to the high-side economic surprise of the last year, what looked like wishing and hoping last March appears more plausible 12 months later
· TSX -13.70 to 14,000 as energy stocks failed to respond to higher oil prices while investors took in good news about efforts to bring an overheated Japanese nuclear complex under control
· DOW -17.90 to 12,018.63
· Dollar -.02c to 102.05c USD as retail statistics came in below expectations. Statistics Canada reported lower auto sales were the main reason retail sales decreased by 0.3 per cent to $37.1 billion in January, the second decline in two months. The subsector with the largest sales increase in dollars was food and beverage stores. Economists had expected overall retail sales to rise by 1.1 per cent.
· Oil +$1.67 to $104.00USD per barrel as coalition forces continue to launch air attacks to enforce a no-fly zone against Libya.
· Gold +$1.20 to $1427.60 per ounce
· Canadian 5 yr bond yields markets -.01bps to 2.57. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the centre of the comfort zone at 1.47.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Thanks to the high-side economic surprise of the last year, what looked like wishing and hoping last March appears more plausible 12 months later
· TSX -13.70 to 14,000 as energy stocks failed to respond to higher oil prices while investors took in good news about efforts to bring an overheated Japanese nuclear complex under control
· DOW -17.90 to 12,018.63
· Dollar -.02c to 102.05c USD as retail statistics came in below expectations. Statistics Canada reported lower auto sales were the main reason retail sales decreased by 0.3 per cent to $37.1 billion in January, the second decline in two months. The subsector with the largest sales increase in dollars was food and beverage stores. Economists had expected overall retail sales to rise by 1.1 per cent.
· Oil +$1.67 to $104.00USD per barrel as coalition forces continue to launch air attacks to enforce a no-fly zone against Libya.
· Gold +$1.20 to $1427.60 per ounce
· Canadian 5 yr bond yields markets -.01bps to 2.57. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the centre of the comfort zone at 1.47.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Monday, March 21, 2011
Financial Update: March 21,2011
Lower inflation in February likely to keep interest rates low...
“However, expect both the annual headline and core rate to move higher in March on a year-on-year basis...”
* TSX +43.48 to 13,789.63 as investors picked up beaten down stocks for a second day after Libya declared a ceasefire in its fight against rebel forces and G7 countries pledged to support the Japanese economy. Despite the heavy volatility, the TSX ended the week up 0.77 per cent following a four per cent slide the previous week
* DOW +83.93 to 11,858.52 Financial stocks helped power New York markets higher after several large banks announced that they were increasing dividends
* Dollar +.02c to 101.41c USD after G7 countries, including Canada, pledged concerted intervention to halt the yen's rise. The yen surged to record highs this week due to its status as a safe haven for investors — even when the emergency is in Japan — and an expected huge repatriation of funds for reconstruction. But a more expensive currency was the last thing Japan needed following the disaster
* Oil -$.35 to $101.07USD per barrel amid uncertainty that Libya would actually follow through with its’ ceasefire announcement
* Gold +$11.90 to $1416.10 per ounce
* Canadian 5 yr bond yields markets -.01bps to 2.51. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the top of the comfort zone at 1.53
“However, expect both the annual headline and core rate to move higher in March on a year-on-year basis...”
* TSX +43.48 to 13,789.63 as investors picked up beaten down stocks for a second day after Libya declared a ceasefire in its fight against rebel forces and G7 countries pledged to support the Japanese economy. Despite the heavy volatility, the TSX ended the week up 0.77 per cent following a four per cent slide the previous week
* DOW +83.93 to 11,858.52 Financial stocks helped power New York markets higher after several large banks announced that they were increasing dividends
* Dollar +.02c to 101.41c USD after G7 countries, including Canada, pledged concerted intervention to halt the yen's rise. The yen surged to record highs this week due to its status as a safe haven for investors — even when the emergency is in Japan — and an expected huge repatriation of funds for reconstruction. But a more expensive currency was the last thing Japan needed following the disaster
* Oil -$.35 to $101.07USD per barrel amid uncertainty that Libya would actually follow through with its’ ceasefire announcement
* Gold +$11.90 to $1416.10 per ounce
* Canadian 5 yr bond yields markets -.01bps to 2.51. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the top of the comfort zone at 1.53
Friday, March 18, 2011
Financial Update: March 18, 2011
Japanese disaster won't plunge global economy back into recession: economists
· TSX +221.33 to 13,746.15 as traders bought up stocks beaten down during a string of losses and hoped that Japan can get a grip on a nuclear crisis unfolding
· DOW +161.29 to 11,774.59
· Dollar +.56c to 101.39c USD as oil prices headed higher
· Oil +-$3.44 to $101.42USD per barrel prices were higher as focus returns to Libya and amid clashes between security forces — some brought in from Saudi Arabia and other Gulf states — and anti-government protesters in Bahrain. Saudi Arabia is the world’s largest oil exporter and some analysts are worried that the unrest in Bahrain could spill over into that country.
· Gold +$8.10 to $1404.20 per ounce
· Canadian 5 yr bond yields markets +.08bps to 2.52. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the top of the comfort zone at 1.52.
· TSX +221.33 to 13,746.15 as traders bought up stocks beaten down during a string of losses and hoped that Japan can get a grip on a nuclear crisis unfolding
· DOW +161.29 to 11,774.59
· Dollar +.56c to 101.39c USD as oil prices headed higher
· Oil +-$3.44 to $101.42USD per barrel prices were higher as focus returns to Libya and amid clashes between security forces — some brought in from Saudi Arabia and other Gulf states — and anti-government protesters in Bahrain. Saudi Arabia is the world’s largest oil exporter and some analysts are worried that the unrest in Bahrain could spill over into that country.
· Gold +$8.10 to $1404.20 per ounce
· Canadian 5 yr bond yields markets +.08bps to 2.52. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is at the top of the comfort zone at 1.52.
Thursday, March 17, 2011
Financial Update: St. Patrick's Day Edition
Japan’s crisis response likely to drive up U.S. interest rates:
Experts predict the result could be a half- percentage-point increase in U.S. 10-year Treasury yields.
Canadian economic growth will pick up despite crisis in Japan...
New forecast has the Canadian economy advancing a robust 3.5 per cent in the first half of this year, before slowing slightly in the second half
· TSX -22.14 to 13,524.82 reversed a near 1 percent gain in volatile trading, declining for a third straight session as Japan 's nuclear crisis and clashes in the Middle East weighed on investor sentiment, with strong resource prices cushioning the TSX's fall.
· DOW -242.12 to 11,613.30 Equity markets are being rocked as black-swan events** in the Middle East and Japan weigh heavily on sentiment. The drop was also fuelled by weak U.S. housing data as US housing starts plunged to its lowest level in a year
· Dollar -.80c to 100.83c USD the loonie is trapped in a global rush to the exits from risky assets sparked by the nuclear crisis in Japan
· Oil +-$.80 to $97.98USD per barrel
· Gold +$3.30 to $1396.00 per ounce
· Canadian 5 yr bond yields markets -.10bps to 2.44. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is above the comfort zone at 1.60 as bonds soar in a flight to safety
**One more animal to add to our financial zoo. We have the bull, the bear, the dove, the hawk and now the black swan. Characterized by philosopher Nassim Nicholas Taleb, the black swan theory refers to events that are undirected and not predicted. Based on Mr. Taleb’s criteria, the event is a surprise, has a major impact on society, and is rationalized by hindsight. Past examples include 9/11 and the sub-prime mortgage crisis that tipped off the recent recession.
While not everyone one will agree, many market observers, including noted bear Nouriel Roubini, are describing Japan’s nuclear emergency and political turmoil in North Africa and the Middle East as “black swans” that are adding significant headwinds to financial markets.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Experts predict the result could be a half- percentage-point increase in U.S. 10-year Treasury yields.
Canadian economic growth will pick up despite crisis in Japan...
New forecast has the Canadian economy advancing a robust 3.5 per cent in the first half of this year, before slowing slightly in the second half
· TSX -22.14 to 13,524.82 reversed a near 1 percent gain in volatile trading, declining for a third straight session as Japan 's nuclear crisis and clashes in the Middle East weighed on investor sentiment, with strong resource prices cushioning the TSX's fall.
· DOW -242.12 to 11,613.30 Equity markets are being rocked as black-swan events** in the Middle East and Japan weigh heavily on sentiment. The drop was also fuelled by weak U.S. housing data as US housing starts plunged to its lowest level in a year
· Dollar -.80c to 100.83c USD the loonie is trapped in a global rush to the exits from risky assets sparked by the nuclear crisis in Japan
· Oil +-$.80 to $97.98USD per barrel
· Gold +$3.30 to $1396.00 per ounce
· Canadian 5 yr bond yields markets -.10bps to 2.44. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is above the comfort zone at 1.60 as bonds soar in a flight to safety
**One more animal to add to our financial zoo. We have the bull, the bear, the dove, the hawk and now the black swan. Characterized by philosopher Nassim Nicholas Taleb, the black swan theory refers to events that are undirected and not predicted. Based on Mr. Taleb’s criteria, the event is a surprise, has a major impact on society, and is rationalized by hindsight. Past examples include 9/11 and the sub-prime mortgage crisis that tipped off the recent recession.
While not everyone one will agree, many market observers, including noted bear Nouriel Roubini, are describing Japan’s nuclear emergency and political turmoil in North Africa and the Middle East as “black swans” that are adding significant headwinds to financial markets.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Wednesday, March 16, 2011
Financial Update: March 16, 2011
Selling a house? Beware the costs...
"If you're thinking of selling your house to make a little money before rising interest rates squeeze the real estate market, there's good news and bad news."
* TSX -72.23 to 13,546.96 TSX opened with a shudder and closed lower at the end of a whipsaw session, initially shedding 400 points. Japan 's benchmark Nikkei 225 stock average took the biggest hit in world markets, falling more than 1,000 points, or 11 per cent, after a six per cent decline Monday. “It’s very hard to quantify what’s transpIiring and very hard to quantify the risk in the system and there's a tremendous amount of misinformation circulating about,". Before cooler heads could prevail to cut the sell-off in half, more than US$1-trillion in equity value was wiped out across major indices around the world
* DOW -137.74 to 11,855.42 the DOW fell so quickly after the opening bell that the stock exchange invoked a special rule to reduce volatility.
* Dollar -1.19c to 101.63c USD The Canadian dollar went on a wild roller-coaster ride as the world's currencies reacted to investor fears over Japan 's unfolding nuclear disaster. The loonie plunged 2.25 cents to near parity, then in a matter of hours recovered more than half the loss. The volatility will continue and the uncertainty has flipped the fundamentals of currency trading on its head, said Dennis Gartman, a U.S. trader. “It’s just a flight to safety. When all else fails go to the U.S. dollar, or go to the Swiss franc,"
* Oil -$4.01 to $97.18USD per barrel
* Gold -$32.10 to $1392.80 per ounce Gartman said it is impossible to predict when the panic would end. "It will stop when it stops ... that's the best that can be said and that's 35 years of experience speaking,"
* Canadian 5 yr bond yields -.04bps to 2.54. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is now high in the comfort zone at 1.50 due to the rate decrease.
(courtesy of Barb Morgan, DBD Ontario Southwest)
"If you're thinking of selling your house to make a little money before rising interest rates squeeze the real estate market, there's good news and bad news."
* TSX -72.23 to 13,546.96 TSX opened with a shudder and closed lower at the end of a whipsaw session, initially shedding 400 points. Japan 's benchmark Nikkei 225 stock average took the biggest hit in world markets, falling more than 1,000 points, or 11 per cent, after a six per cent decline Monday. “It’s very hard to quantify what’s transpIiring and very hard to quantify the risk in the system and there's a tremendous amount of misinformation circulating about,". Before cooler heads could prevail to cut the sell-off in half, more than US$1-trillion in equity value was wiped out across major indices around the world
* DOW -137.74 to 11,855.42 the DOW fell so quickly after the opening bell that the stock exchange invoked a special rule to reduce volatility.
* Dollar -1.19c to 101.63c USD The Canadian dollar went on a wild roller-coaster ride as the world's currencies reacted to investor fears over Japan 's unfolding nuclear disaster. The loonie plunged 2.25 cents to near parity, then in a matter of hours recovered more than half the loss. The volatility will continue and the uncertainty has flipped the fundamentals of currency trading on its head, said Dennis Gartman, a U.S. trader. “It’s just a flight to safety. When all else fails go to the U.S. dollar, or go to the Swiss franc,"
* Oil -$4.01 to $97.18USD per barrel
* Gold -$32.10 to $1392.80 per ounce Gartman said it is impossible to predict when the panic would end. "It will stop when it stops ... that's the best that can be said and that's 35 years of experience speaking,"
* Canadian 5 yr bond yields -.04bps to 2.54. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is now high in the comfort zone at 1.50 due to the rate decrease.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Tuesday, March 15, 2011
Financial Update: March 15, 2011
Household debt continues to rise...but don't sound the alarm bells just yet..."Overall household liabilities grew by 6.5 per cent from the same period a year ago levels. That was its slowest annual growth rate since the fourth quarter of 2002."
* TSX -55.06 to 13,619.19 No surprise that TSX backed off Monday as commodity prices continued to decline while investors tried to assess the economic impact of Friday's catastrophic earthquake and tsunami in Japan. The Japanese stock market plunged over 6% but so far has caused only minor ripples on the global economy.
* DOW -51.24 to 11,993.16 taking the DOW below the 12,000 level.
* Dollar -.16c to 102.82c USD as falling oil prices helped push the Canadian dollar down.
* Oil +$.03 to $101.19USD per barrel Three of Japan’s five largest refineries have been shut down, which will immediately crimp demand for crude. Japan is the world’s third-largest crude consumer at 4.5 million barrel a day, the second-largest net oil importer and the biggest importer of liquefied natural gas and coal.
* Gold +$3.10 to $1424.90 per ounce
* Canadian 5 yr bond yields markets -.08bps to 2.58. The spread (based on the NEW MERIX 5 yr rate published rate of 4.04%) is now in the middle of the comfort zone at 1.46 due to the rate decrease.
(courtesy of Barb Morgan, DBD Ontario Southwest)
* TSX -55.06 to 13,619.19 No surprise that TSX backed off Monday as commodity prices continued to decline while investors tried to assess the economic impact of Friday's catastrophic earthquake and tsunami in Japan. The Japanese stock market plunged over 6% but so far has caused only minor ripples on the global economy.
* DOW -51.24 to 11,993.16 taking the DOW below the 12,000 level.
* Dollar -.16c to 102.82c USD as falling oil prices helped push the Canadian dollar down.
* Oil +$.03 to $101.19USD per barrel Three of Japan’s five largest refineries have been shut down, which will immediately crimp demand for crude. Japan is the world’s third-largest crude consumer at 4.5 million barrel a day, the second-largest net oil importer and the biggest importer of liquefied natural gas and coal.
* Gold +$3.10 to $1424.90 per ounce
* Canadian 5 yr bond yields markets -.08bps to 2.58. The spread (based on the NEW MERIX 5 yr rate published rate of 4.04%) is now in the middle of the comfort zone at 1.46 due to the rate decrease.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Monday, March 14, 2011
Financial Update: March 14, 2011
REMINDER! Merix will be implementing new Government mortgage rules at midnight ET tonight, Monday March 14th, 2011.
February job creation disappoints as unemployment rate stays unchanged at 7.8%..."the Bank of Canada will look on this as a dovish report and will see no urgency to start hiking interest rates soon."
* TSX +35.67 to 13,674.25 closed higher Friday even as oil prices slid on concerns that a massive earthquake and tsunami will slow the Japanese economy and that the Chinese government will take further steps to battle high inflation.
* DOW +59.79 to 12,044.40 New York markets were higher amid a strong retail sales report. The U.S. Commerce Department said retail sales rose by one per cent last month. Part of the gain reflected higher prices for gasoline.
* Dollar +.48c to 102.98c USD
* Oil -$1.54 to $101.16USD per barrel Even with Friday's decline, crude oil is still up more than 10 per cent from the middle of last month on worries that fighting in Libya could spread to big oil producers in the Persian Gulf, such as Saudi Arabia.
* Gold +$9.30 to $1421.80 per ounce
* Canadian 5 yr bond yields markets -.01bps to 2.66. The spread (based on the MERIX 5 yr rate published rate of 4.14%) has now settled into the middle of the comfort zone at 1.48.
(courtesy of Barb Morgan, DBD Ontario Southwest)
February job creation disappoints as unemployment rate stays unchanged at 7.8%..."the Bank of Canada will look on this as a dovish report and will see no urgency to start hiking interest rates soon."
* TSX +35.67 to 13,674.25 closed higher Friday even as oil prices slid on concerns that a massive earthquake and tsunami will slow the Japanese economy and that the Chinese government will take further steps to battle high inflation.
* DOW +59.79 to 12,044.40 New York markets were higher amid a strong retail sales report. The U.S. Commerce Department said retail sales rose by one per cent last month. Part of the gain reflected higher prices for gasoline.
* Dollar +.48c to 102.98c USD
* Oil -$1.54 to $101.16USD per barrel Even with Friday's decline, crude oil is still up more than 10 per cent from the middle of last month on worries that fighting in Libya could spread to big oil producers in the Persian Gulf, such as Saudi Arabia.
* Gold +$9.30 to $1421.80 per ounce
* Canadian 5 yr bond yields markets -.01bps to 2.66. The spread (based on the MERIX 5 yr rate published rate of 4.14%) has now settled into the middle of the comfort zone at 1.48.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Friday, March 11, 2011
Financial Update: March 11, 2011
Why the BoC won’t raise rates until October...
Central bank may still hike rates before summer...
Above are two recent articles stating opposite points of view. If experts can’t agree on what interest rates will do, how are your clients supposed to decide which product to choose?
Here's one simple solution...choose both! Separate yourself from the heard by offering your customer something their Bank won't or can't.
The MERIX 50/50 is a Wise choice in this market...the cash flow benefits of low ARM rates with the added security of fixed rates.
* TSX -246.13 to 13,638.58 as disappointing trade data from China raised worries about the strength of the world's second-largest economy and sent prices for oil and metals sliding. China reported a surprise trade deficit of US$7.3 billion in February as surging prices for oil and other commodities pushed up its import bill. Economists had expected a US$4.9-billion surplus. Additionally weekly US jobless claims took an unexpected jump.
* DOW -228.48 to 11,984.61 The European debt crisis also weighed on markets after Moody’s downgraded its credit rating on Spain by one notch to Aa2. With trouble across the Middle East, the ongoing woes of heavy debt and restructuring in Europe and now the one shining beacon of light, China, is showing some signs of pausing.
* Dollar -.73c to 102.50c USD as soft commodity prices helped push the Canadian dollar down.
* Oil -$1.68 to $102.70USD per barrel amid unrest that has toppled governments in Tunisia and Egypt and sparked heavy fighting in Libya. There are fears such upheavals could spread to oil producers in the Persian Gulf, particularly Saudi Arabia , where police reportedly opened fire on protesters at a rally in the eastern city of Qatif on Thursday. Meanwhile, Libyan rebel forces beat a retreat from the strategic oil port of Ras Lanouf on Thursday as the army of Moammar Gadhafi army pounded the town with artillery. Today will show effects of a massive earthquake and tsunami struck which Japan, triggering knee-jerk flight to safety selling in regional markets as well.
* Gold -$17.10 to $1412.50 per ounce as gold stocks also sold off.
* Canadian 5 yr bond yields markets -.08bps to 2.67. The spread (based on the MERIX 5 yr rate published rate of 4.14%) has now settled into the middle of the comfort zone at 1.47.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Central bank may still hike rates before summer...
Above are two recent articles stating opposite points of view. If experts can’t agree on what interest rates will do, how are your clients supposed to decide which product to choose?
Here's one simple solution...choose both! Separate yourself from the heard by offering your customer something their Bank won't or can't.
The MERIX 50/50 is a Wise choice in this market...the cash flow benefits of low ARM rates with the added security of fixed rates.
* TSX -246.13 to 13,638.58 as disappointing trade data from China raised worries about the strength of the world's second-largest economy and sent prices for oil and metals sliding. China reported a surprise trade deficit of US$7.3 billion in February as surging prices for oil and other commodities pushed up its import bill. Economists had expected a US$4.9-billion surplus. Additionally weekly US jobless claims took an unexpected jump.
* DOW -228.48 to 11,984.61 The European debt crisis also weighed on markets after Moody’s downgraded its credit rating on Spain by one notch to Aa2. With trouble across the Middle East, the ongoing woes of heavy debt and restructuring in Europe and now the one shining beacon of light, China, is showing some signs of pausing.
* Dollar -.73c to 102.50c USD as soft commodity prices helped push the Canadian dollar down.
* Oil -$1.68 to $102.70USD per barrel amid unrest that has toppled governments in Tunisia and Egypt and sparked heavy fighting in Libya. There are fears such upheavals could spread to oil producers in the Persian Gulf, particularly Saudi Arabia , where police reportedly opened fire on protesters at a rally in the eastern city of Qatif on Thursday. Meanwhile, Libyan rebel forces beat a retreat from the strategic oil port of Ras Lanouf on Thursday as the army of Moammar Gadhafi army pounded the town with artillery. Today will show effects of a massive earthquake and tsunami struck which Japan, triggering knee-jerk flight to safety selling in regional markets as well.
* Gold -$17.10 to $1412.50 per ounce as gold stocks also sold off.
* Canadian 5 yr bond yields markets -.08bps to 2.67. The spread (based on the MERIX 5 yr rate published rate of 4.14%) has now settled into the middle of the comfort zone at 1.47.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Thursday, March 10, 2011
March 18th Mortgage Insurance Changes
Good Day Approved Originators!
As you are aware the Government of Canada recently announced a number of product and policy changes with regards to the Mortgage Insurance Guarantee Parameters in an effort to encourage Canadian families to reduce debt and increase savings.
Please find a summary of changes below along with our implementation process. Updated product and policy guidelines will be provded as the new policies become effective.
Effective March 14, 2011 (11:59 pm ET)...
1. Maximum Amortization Period:
High Ratio Business
· For high ratio deals, (loan to values greater than 80%) the maximum amortization has been reduced to 30 years from 35 years.
Conventional Business
· For conventional deals, (loan to values less than 80%) the maximum amortization will remain at 40 years for MERIX.
2. Refinance Maximum Loan to Value:
The maximum loan to value for 1-4 unit residential properties will be reduced to 85% from 90%.
Implementation:
· Merix will continue to accept applications and pre-approvals based upon existing policy guidelines provided the transactions become a “real deal” on or before March 14th, 2011 at 11:59 pm EST. A real purchase deal is defined as having a firm and bona fide Offer of Purchase and Sale and a financing or refinancing agreement issued (commitment issued). A real deal for a refinance transaction would be defined as a commitment issued.
· Merix will allow deals to close on or after March 18, 2011 provided they become real deals prior to March 14th at 11:59 pm EST and close within the interest rate guarantee period. 60 days for refinance transactions and 120 days for purchase transactions. Product and program specific guidelines apply.
· Should a pre-approval not become a real deal before the Merix deadlines we will honor the existing rate guarantee until expiry of the initial pre-approval provided the client qualifies under the new guidelines.
Should you have any questions, please contact your Director of Business Development and they will be happy to assist you.
As you are aware the Government of Canada recently announced a number of product and policy changes with regards to the Mortgage Insurance Guarantee Parameters in an effort to encourage Canadian families to reduce debt and increase savings.
Please find a summary of changes below along with our implementation process. Updated product and policy guidelines will be provded as the new policies become effective.
Effective March 14, 2011 (11:59 pm ET)...
1. Maximum Amortization Period:
High Ratio Business
· For high ratio deals, (loan to values greater than 80%) the maximum amortization has been reduced to 30 years from 35 years.
Conventional Business
· For conventional deals, (loan to values less than 80%) the maximum amortization will remain at 40 years for MERIX.
2. Refinance Maximum Loan to Value:
The maximum loan to value for 1-4 unit residential properties will be reduced to 85% from 90%.
Implementation:
· Merix will continue to accept applications and pre-approvals based upon existing policy guidelines provided the transactions become a “real deal” on or before March 14th, 2011 at 11:59 pm EST. A real purchase deal is defined as having a firm and bona fide Offer of Purchase and Sale and a financing or refinancing agreement issued (commitment issued). A real deal for a refinance transaction would be defined as a commitment issued.
· Merix will allow deals to close on or after March 18, 2011 provided they become real deals prior to March 14th at 11:59 pm EST and close within the interest rate guarantee period. 60 days for refinance transactions and 120 days for purchase transactions. Product and program specific guidelines apply.
· Should a pre-approval not become a real deal before the Merix deadlines we will honor the existing rate guarantee until expiry of the initial pre-approval provided the client qualifies under the new guidelines.
Should you have any questions, please contact your Director of Business Development and they will be happy to assist you.
Financial Update: March 10, 2011
Canada new home prices hit record high, pace slows
Homeowners confident about ability to pay mortgages despite record debt levels...
Fewer respondents than in last year's survey said it was better to buy now rather than wait, suggesting that buyers aren't feeling the same sense of urgency to get into the market
· TSX -128.26 to 13,884,71 was lower for a third straight session, dragged down by mining stocks, and a debt laden Portugal, amid extra concerns that high oil prices due to unrest in Libya may slow the global economy and reduce demand for industrial metals. The main TSX index is up 83.4 per cent since its recessionary low point on Mar. 9, 2009, but is still about 1,000 points short of the all-time highs hit in the summer of 2008.
· DOW -1.29 to 12,213.09
· Dollar +.29c to 103.23c USD the dollar has benefitted from higher oil prices hitting its highest close since November 2007, when it touched $106 in after-hours trading. The Canadian dollar closed with an all-time high of $106.14 on Aug 20, 1957 and an all-time low of 61.97c on Jan 21, 2002. It’s expected to remain above parity for the rest of the 2011.
· Oil -$.64 to $104.38USD per barrel
· Gold +$2.40 to $1429.60 per ounce
· Canadian 5 yr bond yields markets -.06bps to 2.75. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is near the bottom of the comfort zone at 1.39.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
Homeowners confident about ability to pay mortgages despite record debt levels...
Fewer respondents than in last year's survey said it was better to buy now rather than wait, suggesting that buyers aren't feeling the same sense of urgency to get into the market
· TSX -128.26 to 13,884,71 was lower for a third straight session, dragged down by mining stocks, and a debt laden Portugal, amid extra concerns that high oil prices due to unrest in Libya may slow the global economy and reduce demand for industrial metals. The main TSX index is up 83.4 per cent since its recessionary low point on Mar. 9, 2009, but is still about 1,000 points short of the all-time highs hit in the summer of 2008.
· DOW -1.29 to 12,213.09
· Dollar +.29c to 103.23c USD the dollar has benefitted from higher oil prices hitting its highest close since November 2007, when it touched $106 in after-hours trading. The Canadian dollar closed with an all-time high of $106.14 on Aug 20, 1957 and an all-time low of 61.97c on Jan 21, 2002. It’s expected to remain above parity for the rest of the 2011.
· Oil -$.64 to $104.38USD per barrel
· Gold +$2.40 to $1429.60 per ounce
· Canadian 5 yr bond yields markets -.06bps to 2.75. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is near the bottom of the comfort zone at 1.39.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
Wednesday, March 9, 2011
Financial Update: March 9, 2011
Price of food in Canada could jump between 5 and 7 per cent in 2011: economist...
A family that spends about $400 a month on groceries could end up paying up to $340 extra in a year
Housing starts rise in February
· TSX -79.38 to 14,012.38 its lowest level in more than a week as oil companies and gold miners succumbed to softer commodity prices though strength in financial shares helped limit the losses.
· DOW +124.35 to 12,214.38
· Dollar +.15c to 102.94c USD even as the greenback gained against a variety of other currencies.
· Oil -$.42 to $105.02USD per barrel as OPEC ministers discussed whether to ramp up oil production in the wake of the Libyan uprising. The Libyan crisis has forced companies to evacuate workers, and most of the country's 1.6 million barrels of daily production has been shut down. Boosting production elsewhere would likely cool off overheated energy prices, but experts warn that doing so would weaken OPEC's ability to manage global supplies later this year.
· Gold -$7.30 to $1427.20 per ounce
· Canadian 5 yr bond yields markets +.04bps to 2.81. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is now outside of the comfort zone at 1.33.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
A family that spends about $400 a month on groceries could end up paying up to $340 extra in a year
Housing starts rise in February
· TSX -79.38 to 14,012.38 its lowest level in more than a week as oil companies and gold miners succumbed to softer commodity prices though strength in financial shares helped limit the losses.
· DOW +124.35 to 12,214.38
· Dollar +.15c to 102.94c USD even as the greenback gained against a variety of other currencies.
· Oil -$.42 to $105.02USD per barrel as OPEC ministers discussed whether to ramp up oil production in the wake of the Libyan uprising. The Libyan crisis has forced companies to evacuate workers, and most of the country's 1.6 million barrels of daily production has been shut down. Boosting production elsewhere would likely cool off overheated energy prices, but experts warn that doing so would weaken OPEC's ability to manage global supplies later this year.
· Gold -$7.30 to $1427.20 per ounce
· Canadian 5 yr bond yields markets +.04bps to 2.81. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is now outside of the comfort zone at 1.33.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
Tuesday, March 8, 2011
Purchase Plus Improvements: Getting your client into a home they REALLY want!
Below is our new webinar explaining our Purchase Plus Improvements program and how it can help your realtor network close deals!
How many times have realtors heard prospective buyers say they like the house and the location however complain that a kitchen needs updating, or the roof needs work, the bathroom is outdated, the carpet needs to be ripped out, and for those reasons the house sits on the market...for a long time?
By understanding how Purchase Plus Improvements can work for them, your realtor network can talk to prospective buyers about including the desired renos into the purchase transaction, thereby increasing the liklihood of closing the deal!
How many times have realtors heard prospective buyers say they like the house and the location however complain that a kitchen needs updating, or the roof needs work, the bathroom is outdated, the carpet needs to be ripped out, and for those reasons the house sits on the market...for a long time?
By understanding how Purchase Plus Improvements can work for them, your realtor network can talk to prospective buyers about including the desired renos into the purchase transaction, thereby increasing the liklihood of closing the deal!
Financial Update: March 8, 2011
Reno coach keeps projects in the ballpark...
This is a helpful CRM piece for your newsletters or social media, or a great handout with a purchase plus improvements conversation.
· TSX -160.42 to 14,092.35 The TSX was sharply lower led by falling mining stocks as copper prices tumbled amid worries about how high oil prices will impact demand. Energy stocks also backed off even as fighting in Libya continued to push oil prices higher.
· DOW -79.85 to 12,090.03 "The market is concerned over the high cost of energy and whether it will slow down the world's growth," observed Bob Tebbutt, vice-president at Peregrine Financial Group Canada.
· Dollar -.12c to 102.79c USD The Canadian dollar had earlier benefited from higher crude and bullion prices, but ended closing down
· Oil +$1.02 to $105.44USD per barrel reaches a 2 ½ year high on fear that the situation in the middle east will continue to worsen.
· Gold +$5.90 to $1434.50 per ounce as nervous investors sought a safe haven in bullion
· Canadian 5 yr bond yields +.01bps to 2.77. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is at the bottom of comfort zone at 1.37.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
This is a helpful CRM piece for your newsletters or social media, or a great handout with a purchase plus improvements conversation.
· TSX -160.42 to 14,092.35 The TSX was sharply lower led by falling mining stocks as copper prices tumbled amid worries about how high oil prices will impact demand. Energy stocks also backed off even as fighting in Libya continued to push oil prices higher.
· DOW -79.85 to 12,090.03 "The market is concerned over the high cost of energy and whether it will slow down the world's growth," observed Bob Tebbutt, vice-president at Peregrine Financial Group Canada.
· Dollar -.12c to 102.79c USD The Canadian dollar had earlier benefited from higher crude and bullion prices, but ended closing down
· Oil +$1.02 to $105.44USD per barrel reaches a 2 ½ year high on fear that the situation in the middle east will continue to worsen.
· Gold +$5.90 to $1434.50 per ounce as nervous investors sought a safe haven in bullion
· Canadian 5 yr bond yields +.01bps to 2.77. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is at the bottom of comfort zone at 1.37.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
Monday, March 7, 2011
Financial Update: March 7, 2011
Long-awaited U.S. jobs recovery augurs well for Canadian automakers, economy...
One of the strongest U.S. employment reports in almost five years is raising expectations for Canada’s economy.
• TSX +38.05 to 14,252.77 benefiting from investor nervousness about unrest in the Mideast which sent oil prices surging.
• DOW -88.32 to 12,169.88 the latest spike in oil prices raised concerns about the economic recovery.
• Dollar +.05c to 102.91c USD.
• Oil +$2.51 to $104.42USD per barrel.
• Gold +$21.20 to $1428.60 per ounce rose to near a record high and silver jumped to its highest in more than three decadeson inflation worries triggered by rising oil prices as widening clashes in Libya strengthened fears the country was on the brink of a civil war.
• Canadian 5 yr bond yields +.12bps to 2.76. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is at the bottom of comfort zone at 1.38.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
One of the strongest U.S. employment reports in almost five years is raising expectations for Canada’s economy.
• TSX +38.05 to 14,252.77 benefiting from investor nervousness about unrest in the Mideast which sent oil prices surging.
• DOW -88.32 to 12,169.88 the latest spike in oil prices raised concerns about the economic recovery.
• Dollar +.05c to 102.91c USD.
• Oil +$2.51 to $104.42USD per barrel.
• Gold +$21.20 to $1428.60 per ounce rose to near a record high and silver jumped to its highest in more than three decadeson inflation worries triggered by rising oil prices as widening clashes in Libya strengthened fears the country was on the brink of a civil war.
• Canadian 5 yr bond yields +.12bps to 2.76. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is at the bottom of comfort zone at 1.38.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
Friday, March 4, 2011
Financial Update: March 4, 2011
Built to Sell blog...
Great blog by John Warrillow talking about all the elements needed to build value in your company, including the necessity of A recurring revenue in your business. His book, "Built to Sell" is out next month. It might be worth a read! “The best thing you can do for your business – and peace of mind – is to create a recurring revenue model”.
Think trailers...think MERIX.
Housing crisis 'inevitable' if prices outpace income...
The question of a correction comes down to whether increases in household incomes can keep up with rising home prices.
* TSX +70.70 to 14,214.72. The TSX pushed to its highest level in almost three years since June 2008, as investors cheered stellar quarterly results from Canada's two biggest banks who trounced earnings expectations, sending financial shares up sharply.
* DOW +191.40 to 12,258.20
* Dollar +.02c to 102.86c USD
* Oil -$.32 to $101.91USD per barrel retreated from two-year highs amid profit taking and hopes that the conflict in Libya might be resolved by international mediation.
* Gold -$21.30 to $1416.40 per ounce market watchers said investors were likely taking profits following recent impressive runs in those sectors.
* Canadian 5 yr bond yields markets +.18bps to 2.64. The spread (based on the MERIX 5 yr rate published rate of 4.14%) has plunged to BELOW the comfort zone at 1.32.
Two things happened yesterday: they reset the bond maturity being used that acts as the 5 year benchmark, now maturing June 2016. Yields also went up so it appeared to be a very large increase. The reality is yields were up about 10 bps, however that still supports rates increasing.
Great blog by John Warrillow talking about all the elements needed to build value in your company, including the necessity of A recurring revenue in your business. His book, "Built to Sell" is out next month. It might be worth a read! “The best thing you can do for your business – and peace of mind – is to create a recurring revenue model”.
Think trailers...think MERIX.
Housing crisis 'inevitable' if prices outpace income...
The question of a correction comes down to whether increases in household incomes can keep up with rising home prices.
* TSX +70.70 to 14,214.72. The TSX pushed to its highest level in almost three years since June 2008, as investors cheered stellar quarterly results from Canada's two biggest banks who trounced earnings expectations, sending financial shares up sharply.
* DOW +191.40 to 12,258.20
* Dollar +.02c to 102.86c USD
* Oil -$.32 to $101.91USD per barrel retreated from two-year highs amid profit taking and hopes that the conflict in Libya might be resolved by international mediation.
* Gold -$21.30 to $1416.40 per ounce market watchers said investors were likely taking profits following recent impressive runs in those sectors.
* Canadian 5 yr bond yields markets +.18bps to 2.64. The spread (based on the MERIX 5 yr rate published rate of 4.14%) has plunged to BELOW the comfort zone at 1.32.
Two things happened yesterday: they reset the bond maturity being used that acts as the 5 year benchmark, now maturing June 2016. Yields also went up so it appeared to be a very large increase. The reality is yields were up about 10 bps, however that still supports rates increasing.
Thursday, March 3, 2011
Financial Update: March 3, 2011
How I saved thousands on my mortgage...
Good article for consumers, except the author didn't talk to a mortgage broker! Why not? What are you doing to help increase awareness of the services you offer?
· TSX +21.17 to 14,144.02(Reuters) supported by energy stocks and gold
· DOW +8.78 to 12,066.80
· Dollar +.27c to 102.84c USD The Canadian dollar had lift from surging oil prices, after earlier going as high as 103.01 cents US.
· Oil +$2.60 to $102.23 USD per barrel Oil prices settled above $102 per barrel for the first time in more than 2 years as fighting escalated in Libya and petroleum demand grew in the U.S.
· Gold +$6.50 to $1437.70 per ounce as nervous investors looking for safe haven pushed gold to another new high.
· Canadian 5 yr bond yields markets +.04bps to 2.64. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is now at the top of the comfort zone at 1.50.
Good article for consumers, except the author didn't talk to a mortgage broker! Why not? What are you doing to help increase awareness of the services you offer?
· TSX +21.17 to 14,144.02(Reuters) supported by energy stocks and gold
· DOW +8.78 to 12,066.80
· Dollar +.27c to 102.84c USD The Canadian dollar had lift from surging oil prices, after earlier going as high as 103.01 cents US.
· Oil +$2.60 to $102.23 USD per barrel Oil prices settled above $102 per barrel for the first time in more than 2 years as fighting escalated in Libya and petroleum demand grew in the U.S.
· Gold +$6.50 to $1437.70 per ounce as nervous investors looking for safe haven pushed gold to another new high.
· Canadian 5 yr bond yields markets +.04bps to 2.64. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is now at the top of the comfort zone at 1.50.
Wednesday, March 2, 2011
Financial Update: March 2, 2011
Bank of Canada keeps short-term rates low, looks through stronger economy...
The central bank's surprisingly "dovish" statement suggests Canadians will be able to borrow at historically low interest rates for months to come.
Desjardins & Meridian credit unions to merge...
Desjardins Credit Union has agreed to amalgamate with the much larger Meridian Credit Union under the Meridian banner.
* TSX -5.42 to 14,131.08 (Reuters) as nervousness about supply pushed crude prices close to the US$100 a barrel mark and raised worries about the effect of higher oil on global economies and investors took in a widely expected move by the Bank of Canada to leave its key interest rate unchanged at one per cent.
* DOW -124.61 to 12,101.73 higher oil spooked New York markets as U.S. Federal Reserve Chairman Ben Bernanke warned that a prolonged rise in oil prices would pose a danger to the economy. But he says the more likely outcome is a temporary and modest increase in consumer prices, not runaway inflation.
* Dollar -.28c to 102.66c USD as the central bank warned of the negative effects of a rising currency. "The export sector continues to face considerable challenges from the cumulative effects of the persistent strength in the Canadian dollar and Canada’s poor relative productivity performance."
* Oil +$1.60 to $96.57USD per barrel as fighting in Libya continued to unnerve markets. Moammar Gadhafi, Libya’s ruler of 41 years, has already lost control of the eastern half of the country since protests demanding his ouster began two weeks ago. Prices have been volatile over worries about making up the shortfall from Africa's biggest crude producer and worries over whether the political upheaval will spread to other oil-rich countries.
* Gold +$21.30 to $1431.20 per ounce Gold stocks were the biggest advancer as investors seek a safe haven, sending the price to a new record high amid continuing concerns about political unrest in the Middle East, the impact of rising crude oil prices and a sagging stock market.
* Canadian 5 yr bond yields markets -.03bps to 2.60. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is now at the top of the comfort zone at 1.54.
(courtesy of Barb Morgan, DBD Ontario Southwest)
The central bank's surprisingly "dovish" statement suggests Canadians will be able to borrow at historically low interest rates for months to come.
Desjardins & Meridian credit unions to merge...
Desjardins Credit Union has agreed to amalgamate with the much larger Meridian Credit Union under the Meridian banner.
* TSX -5.42 to 14,131.08 (Reuters) as nervousness about supply pushed crude prices close to the US$100 a barrel mark and raised worries about the effect of higher oil on global economies and investors took in a widely expected move by the Bank of Canada to leave its key interest rate unchanged at one per cent.
* DOW -124.61 to 12,101.73 higher oil spooked New York markets as U.S. Federal Reserve Chairman Ben Bernanke warned that a prolonged rise in oil prices would pose a danger to the economy. But he says the more likely outcome is a temporary and modest increase in consumer prices, not runaway inflation.
* Dollar -.28c to 102.66c USD as the central bank warned of the negative effects of a rising currency. "The export sector continues to face considerable challenges from the cumulative effects of the persistent strength in the Canadian dollar and Canada’s poor relative productivity performance."
* Oil +$1.60 to $96.57USD per barrel as fighting in Libya continued to unnerve markets. Moammar Gadhafi, Libya’s ruler of 41 years, has already lost control of the eastern half of the country since protests demanding his ouster began two weeks ago. Prices have been volatile over worries about making up the shortfall from Africa's biggest crude producer and worries over whether the political upheaval will spread to other oil-rich countries.
* Gold +$21.30 to $1431.20 per ounce Gold stocks were the biggest advancer as investors seek a safe haven, sending the price to a new record high amid continuing concerns about political unrest in the Middle East, the impact of rising crude oil prices and a sagging stock market.
* Canadian 5 yr bond yields markets -.03bps to 2.60. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is now at the top of the comfort zone at 1.54.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Tuesday, March 1, 2011
Financial Update: March 1, 2011
GDP jumps, signs point to a stronger than expected Canadian economy in 2011...
GDP figures come one day ahead of a scheduled Bank of Canada policy announcement, but analysts see little chance of the central bank raising interest rates on this morning
· TSX +84.37 to 14,136.50 (Reuters)as traders took in a multibillion-dollar offer for a Canadian miner and a Statistics Canada report that showed the economy grew faster than expected in December.
· DOW +95.89 to 12,226.34
· Dollar +.76c to 102.94c USD jumped higher against the greenback, to hit a 3 year high not seen since Nov 2007, after fourth-quarter GDP data topped expectations and backed predictions that the Bank of Canada will resume interest rate hikes in the first half of the year.
· Oil -$.91 to $96.97 USD per barrel on reports that Libya was still exporting oil. Shipments were thought to have halted last week as protesters clashed with government supporters and strongman Moammar Gadhafi lost control over many of the country's oil fields. But industry officials said Monday that a tanker bound for China was loading oil in the Libyan port of Tobruk. Saudi Arabia also was boosting exports.
· Gold +$.60 to $1409.90 per ounce.
· Canadian 5 yr bond yields +.05bps to 2.63. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is now at the top of the comfort zone at 1.51.
(courtesy of Barb Morgan, DBD Ontario Southwest)
GDP figures come one day ahead of a scheduled Bank of Canada policy announcement, but analysts see little chance of the central bank raising interest rates on this morning
· TSX +84.37 to 14,136.50 (Reuters)as traders took in a multibillion-dollar offer for a Canadian miner and a Statistics Canada report that showed the economy grew faster than expected in December.
· DOW +95.89 to 12,226.34
· Dollar +.76c to 102.94c USD jumped higher against the greenback, to hit a 3 year high not seen since Nov 2007, after fourth-quarter GDP data topped expectations and backed predictions that the Bank of Canada will resume interest rate hikes in the first half of the year.
· Oil -$.91 to $96.97 USD per barrel on reports that Libya was still exporting oil. Shipments were thought to have halted last week as protesters clashed with government supporters and strongman Moammar Gadhafi lost control over many of the country's oil fields. But industry officials said Monday that a tanker bound for China was loading oil in the Libyan port of Tobruk. Saudi Arabia also was boosting exports.
· Gold +$.60 to $1409.90 per ounce.
· Canadian 5 yr bond yields +.05bps to 2.63. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is now at the top of the comfort zone at 1.51.
(courtesy of Barb Morgan, DBD Ontario Southwest)
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