Financial Update: Thursday June 30, 2011

Goodbye June...Hello July!

TSX +83.96 to 13,188.94 (CP)  its third consecutive day of solid gains as traders took in stronger than expected inflation data and news that Greece had passed an austerity bill that should help Athens avoid defaulting on its debt. The surprisingly strong inflation results could put pressure on the Bank of Canada to take a more hawkish tone on inflation in the next interest rate announcement in less than three weeks. The bank had warned it expected inflation to push above three per cent during the spring, but few expected it would hit such elevated levels.

DOW +72.73 to 12,261.42.

Dollar +1.27c to 103.03c USD.

Oil +$1.88 to $94.77USD per barrel   Oil and gold prices appear to have moved past recent lows, a trend that bodes well for the performance of the resource-heavy TSX .  Over two days, oil has recovered the loss from last Thursday when the United States and other oil-importing countries said they would dump emergency oil supplies onto the market.

Gold +$10.40 to $1510.20USD per ounce.

Canadian 5 yr bond yields markets +.15bps to 2.30.  That’s an increase of 30bps since Monday's low! The spread (based on the MERIX 5 yr rate published rate of 3.79%) is now down  to the middle of the comfort zone at 1.49 as money moves away from bonds to stocks. The spread based on the quick close of 3.59% is well below the bottom of the comfort zone at 1.29.

Financial Update: Wednesday June 29, 2011

TSX +138.49 to 13,104.98 (CP)  as commodity prices rallied from recent lows and traders appeared more upbeat ahead of a key Greek vote aimed at avoiding a debt default. There could also be some "window dressing" behind the rally, as investors buy positions to record on their balance sheet ahead of the end of the second quarter on June 30. Coming into the end of this week, with the holidays quickly approaching, trading is going to slow down markedly. That means any investors making moves will have a greater impact on the direction of the overall exchange than usual.

DOW +145.13 to 12,188.69 as French banks agreed to accept slower repayment on Greek debts, another key step in avoiding a Greek debt default. Wall Street was higher amid the news from Greece and mixed domestic economic data. The Standard & Poor's/Case-Shiller home-price index showed home prices in major U.S. cities have risen for the first time in eight months, boosted by an annual flurry of spring buyers.

Dollar +.41c to 101.76c USD as commodity prices rebounded from several days of decline.

Oil +$2.28 to $92.89USD per barrel.

Gold +$3.80 to $1500.20USD per ounce.

Canadian 5 yr bond yields markets +.10bps to 2.15.  The spread (based on the MERIX 5 yr rate published rate of 3.79%) is quickly back to the top of the comfort zone at 1.64 as money moves away from bonds to stocks. The spread based on the quick close of 3.59% is again closer to the bottom of the comfort zone at 1.44.

Financial Update: Tuesday June 28, 2011

TSX +57.60 to 12,966.49 (CP) after a day of light trading as investors were cautiously optimistic that Greece would pass an austerity bill necessary to prevent default on the country's debt, and amid an announcement that global financial regulators plan to increase the capitalization requirements for leading lenders.

DOW +108.98 to 12,043.56 bounced back over 12,000 despite May data that showed Americans spent at the weakest pace in 20 months.

Dollar +.03c to 101.35c USD closed slightly higher against the U.S. dollar as investors traded cautiously ahead of a crucial vote on Greek austerity measures that could help contain the spread of a debt crisis to other European countries.

Oil -$.55 to $90.61USD per barrel.

Gold -$4.50 to $1496.40 per ounce.

Canadian 5 yr bond yields markets +.01bps to 2.059.  The spread (based on the MERIX 5 yr rate published rate of 3.79%) is above the comfort zone at 1.74. The spread based on the quick close of 3.59% is also high in the comfort zone at 1.54.

Financial Update: Monday June 27, 2011

TSX -70.69 to 12,908.89 as energy stocks continued to retreat and tech companies sold off in the wake of a pair of earnings disappointments. The possibility of a default by Greece on its massive debts also pressured markets. The International Monetary Fund reached a final deal with the Greek government on euro 28 billion worth of new austerity measures, however the measures have to be passed by the Greek Parliament during a vote on Tuesday for the bailout funds to be released.

DOW -115.42 to 11,934.58 below the 12,000 benchmark.

Dollar -.93c to 101.32c USD as the greenback gained strength during the morning as nervous investors bought up U.S. Treasurys.

Oil +$.14 to $91.16USD per barrel.

Gold -$19.60 to $1500.90 per ounce after a stronger U.S. dollar helped push gold down.

Canadian 5 yr bond yields markets -.06bps to 2.04.  The spread (based on the MERIX 5 yr rate published rate of 3.79%) is above the comfort zone at 1.75. The spread based on the quick close of 3.59% is also high in the comfort zone at 1.55. 

Financial Update: Wednesday June 22, 2011

TSX +205.62 to 13,063.32 (CP) back over the 13,000 mark as traders felt positive about the outcome of a crucial confidence vote for the Greek government and picked up stocks from across most sectors. Traders also took in data showing that Canadian retail sales were up in April but not as much as economists had expected. Statistics Canada said sales increased 0.3 per cent to $37.4 billion, which was below the 0.5 per cent pace that was forecast. Market heavyweight Research In Motion Ltd. (TSX:RIM) also pushed up the main TSX index following a report by a Waterloo, Ont. radio station that said the BlackBerry maker is laying off as many as 200 people

DOW +109.63 to 12,190.01

Dollar +.82 to 102.84c USD 

Oil +$.14 to $93.40USD per barrel  Hopes for a resolution to the Greek crisis pushed the euro higher and the U.S. dollar lower and the July crude contract. Oil tends to rise when the dollar drops as a cheaper U.S. currency makes commodities such as crude more affordable for investors with their holdings in other currencies. When the dollar gains, oil tends to fall.

Gold +$4.40 to $1546.40 per ounce   bullion up for a sixth day

Canadian 5 yr bond yields markets +.01bps to 2.20.  The spread (based on the MERIX 5 yr rate published rate of 3.79%) is at the top of the comfort zone at 1.59. The spread based on the quick close of 3.59% is below the bottom of the comfort zone at 1.39. 

Financial Update: Monday June 20, 2011

• TSX -63.17 to 12,789.95 as a disappointing outlook from Research In Motion Ltd. triggered a 21 per cent plunge in the BlackBerry maker's stock while investors felt a bit better that Greece could avoid a default on its huge debts

• DOW +42.84 to 12,004.36 investors were relieved to see a gauge of future economic activity come in better than expected. The U.S. Conference Board said its index of leading economic indicators grew a surprisingly strong 0.8 per cent in May. However, the board also warned that the economy was likely to grow in a "choppy" manner through the summer and fall.

• Dollar +.31c to 102.02c USD.

• Oil -$1.94 to $93.01USD per barrel.

• Gold +$9.20 to $1539.10 per ounce.

• Canadian 5 yr bond yields markets +.03bps to 2.18.  The spread (based on the MERIX 5 yr rate published rate of 3.79% is at the top of the comfort zone at 1.61. The spread based on the quick close of 3.59% is close to the bottom of the comfort zone at 1.41.
  

Financial Update: Friday June 17, 2011

• TSX -118.90 to 12,853.13 (CP) 

A solid loss that pushed the main index into correction territory amid rising fears that Greece will have to default on its debt and worries of slowing American economic conditions also contributing to a 10.3 per cent slide from the market's recent high in early March. Investors are deeply worried that a default in Greece could hurt banks elsewhere and set off a catastrophic financial chain reaction.

• DOW +64.25 to 11,961.52 There was discouraging data from the Philadelphia Fed's manufacturing index. It fell from plus 3.9 in May to minus 7.7 in June, which is the worst level in 31 months. Economists had forecast a reading of plus 5.5. The data was released one day after a similar report found that manufacturing was slowing sharply in the New York area. There was some good news on the U.S. labour front though as data showed that fewer Americans applied for unemployment benefits last week, though applications remain above levels consistent with a healthy economy.

• Dollar -.44c to 101.71c USD Traders sought the safe haven status of the U.S. dollar for a second day. The flight to safety pushed the Canadian dollar down.

• Oil +$.14 to $94.95USD per barrel 

Oil prices recovered from earlier losses despite the rising greenback

• Gold +$3.70 to $1529.30 per ounce 

• Canadian 5 yr bond yields markets -.04bps to 2.15. The spread (based on the MERIX 5 yr rate published rate of 3.79%) is at the top of the comfort zone at 1.64. The spread based on the quick close of 3.59% is close to the bottom of the comfort zone at 1.44.

Financial Update: Thursday June 16, 2011

·         TSX -125.79 to 12,972.03 (CP)

o   Sharply falling below 13,000 points again as nervousness about the American economy resurfaced. Investors became increasingly concerned about the worsening debt crisis in Greece. The warning worried investors that Greece's problems could spread to other financially troubled European countries like Spain, Portugal and Ireland.

·         DOW -178.84 to 11,897.27  

o   Stock markets in the U.S. gave back all of the gains they made Tuesday — and then some, falling again below the 12,000 pt benchmark

·         Dollar -1.06c to 102.15c USD  

o   The U.S. dollar strengthened against other currencies on concerns about Europe's economy, with the euro losing two per cent against the U.S. dollar.

·         Oil -$4.56 to $94.81USD per barrel  

o   The financial crisis in Europe threatens to snuff out what's left of the four-month rally in oil that began in Libya. Europe consumes about 18 per cent of the world's oil, and ongoing economic troubles there could slow demand for oil.  Oil tends to fall as the U.S. dollar rises because oil is priced in dollars and becomes more expensive for investors holding foreign currencies as the U.S. dollar gets stronger.

·         Gold +$1.80 to $1526.20 per ounce  

·         Canadian 5 yr bond yields markets -.12bps to 2.19.  

o   The spread (based on the MERIX 5 yr published rate of 3.79%) has thankfully returned to the top of the comfort zone at 1.60.

o    The spread based on the quick close of 3.59% is also more safely back to the bottom of the comfort zone at 1.40. 

Financial Update: Wednesday June 15, 2011

·       TSX +158.10 to 13,097.82 (CP)  

Back up over 13,000 points after a stronger than expected reading on American retail sales made traders feel more confident about the recovery prospects of the American economy. The U.S. Commerce Department reported that retail sales in May declined 0.2 per cent, against the 0.7 per cent slide that economists expected.

·       DOW +123.14 to 12,076.11 

After U.S. Federal Reserve Chairman Ben Bernanke urged Republicans to support raising the U.S. borrowing limit. He said threatening to block the increase to gain deeper federal spending cuts could backfire and worsen the economy.

·       Dollar +.83c to 103.21c USD  

The good news from Canada's largest trading partner helped push the Canadian dollar up, and was also helped along by oil prices which shook off early losses following the retail report

·       Oil -$1.99 to $97.30USD per barrel   

·       Gold +$8.80 to $1524.40 per ounce   

·       Canadian 5 yr bondyields markets +.07bps to 2.31.

The spread based on the MERIX 5 yr published rate of 3.79% is mid comfort zone at 1.48 The spread based on the NEW quick close of 3.59% is now well below the comfort zone at 1.28.

Financial Update: Monday June 13, 2011

·       TSX -171.74 to 13,084 (Reuters) 

The end of another negative week as rising worries about slowing economic conditions pushed stocks lower across most sectors. In addition to a loss in momentum of U.S. growth, "China is slowing, India is slowing their growth and they're doing it intentionally (to fight inflation). We still have high commodity prices putting a damper on the economy. Those are very valid reasons for a retraction in equity prices," said Chris King, portfolio manager at Morgan Meighen and Assoc. (Reuters)

·       DOW -172.45 to 11,951.91 

·       Dollar -.54c to 102.22c USD

Weak oil prices and a stronger U.S. currency pushed the Canadian dollar lower.

·       Oil -$2.64 to $99.29USD per barrel Reports that Saudi Arabia is set to ramp up oil production.

·       Gold -$13.50 to $1529.20 per ounce

·       Canadian 5 yr bondyields markets -.02bps to 2.23.

The spread (based on MERIX 5 yr published rate of 3.89%) is above the comfort zone at 1.66.

The spread based on the NEW quick close of 3.59% is now below the comfort zone at 1.36. 

Financial Update: Friday June 10, 2011

• TSX +71.95 to 13,255.74 (Reuters) 
• Bounced back from a seven-day fall, as some positive U.S. economic data and higher commodity prices prompted investors to pick up beaten down shares. Traders are looking to the release of Statistics Canada's May employment report Friday morning.

• DOW +75.42 to 12,124.36 
• Traders also looked overseas where the European Central Bank announced it would keep its main interest rate unchanged at 1.25 per cent. However, there were indications that the bank will move shortly to raise its key rate. ECB president Jean-Claude Trichet said that "strong vigilance" is warranted in dealing with inflationary pressures-. words often code for a rate increase at the next month's meeting. The prevailing view is that the bank will follow up April’s first interest rate increase in nearly three years with another quarter point rise in July, .The Bank of England also announced it was keeping its key interest rate at an all-time low of 0.5 per cent for a 27th straight month.

• Dollar +.69c to 102.76c USD 
• As oil prices continued to advance in the wake of a decision by the OPEC cartel to maintain current crude oil production levels.

• Oil +$1.19 to $101.93USD per barrel

• Gold +$4.00 to $1542.70 per ounce 

• Canadian 5 yr bond yields markets +.03bps to 2.25. The spread (based on the MERIX 5 yr rate published rate of 3.89%) is above the comfort zone at 1.64. The spread based on the quick close of 3.69% is 1.44.  .

Boris Bozic Exercises Creative Side

Boris Bozic Exercises Creative Side

“To the Point with Bozic”

Boris Bozic is generally known for his years of involvement in the mortgage industry and long list of credentials including current title as Canadian Association of Accredited Mortgage Professionals (CAAMP) Vice Chair. This time he’s off to new ventures (and challenges), blogging. “Get me in front of a room full of people to do a presentation and I’m on. Writing a story that others may actually be interested in reading sounds like a challenge to me,” Bozic stated on his first blog post. This mortgage industry veteran, MERIX Financial CEO/Founder and family man will share his thoughts, opinions and commentary on the world wide web. "This has been something I've been thinking about for a while. It’ll push me to do something I’m not totally comfortable with," Bozic told me a couple of weeks ago. "It won’t be just about the mortgage industry...politics, current events and even book reviews … I read a lot of books you know," he added.

So what can readers expect? The name - “To The Point”, sets the stage and if you know Bozic you will agree this is one of his stronger personality traits. Besides the obvious, mortgage industry commentary, the blog will showcase a lighter side of Bozic. If the first couple of posts are any indication of what is to come, we’ll read about current events, sports, family, politics coupled with humor, personality and strong opinions.

There’s a real humility of writing blogs, Seth Godin and Tom Peters state during an open forum event. Tom Peters, Best-Selling Author and Management Visionary goes on to say, “No single thing in the last 15 years professionally has been more important in my life than blogging. It has changed my life, it has changed my perspective, it has changed my intellectual outlook, it’s changed my emotional outlook, parentheses, and it’s the best damn marketing by an order of magnitude I’ve ever had … and it’s free.” (source)

Maybe Bozic and the other 162 million bloggers are on to something (source). "I'm really going to have fun with this," Bozic said while laughing yesterday.

Personally, I’m looking forward to Bozic’s post on the Air Canada.

To visit or subscribe to “To The Point with Bozic”

Follow Boris Bozic on Twitter @bozictothepoint

# # #

If you’d like more information about this topic, to have Boris Bozic be a guest on your blog or to schedule an interview with Boris Bozic, please email marketing@merixfinancial.com or call 1 888-MERIX-20.

Financial Update: Thursday June 9, 2011

• TSX -99.13 to 13,183.79 (Reuters)
Marked its seventh straight loss on Wednesday, falling to its lowest level since early January as fears over the global economy intensified and metal prices weakened. The index closed below its 200-day moving average for the first time since last August -- a bearish signal for many investors.

• DOW -21.87 to 12,048.94

• Dollar -.44c to 102.07c USD

• Oil +$1.65 to $100.74USD per barrel
Jumped after a meeting of the Organization of Petroleum Exporting Countries broke with the announcement that current production levels will be maintained. There had been wide speculation that the cartel would hike production in order to lower high crude prices that are blamed for hobbling the economic rebound. One OPEC delegate said that Iran , Venezuela and Algeria refused to consider such an increase, which was backed by Saudi Arabia.

• Gold -$5.20 to $1538.70 per ounce
Material prices eased after a speech by U.S. Federal Reserve Chairman Ben Bernanke on Tuesday depressed market sentiment. While Bernanke gave a bleak assessment of the U.S. economy, he offered no hints of further U.S. monetary easing.

• Canadian 5 yr bond yields markets -.03bps to 2.22. The spread (based on MERIX 5 yr published rate of 3.89%) is above the comfort zone at 1.67. The spread based on the quick close of 3.69% is 1.47.

Financial Update: Wednesday June 8, 2011

·         TSX -35.74 to 13,282.92 (Reuters)  

o   Markets failed to get lift from a speech by U.S. Federal Reserve chairman Ben Bernanke , even as he predicted better economic conditions later in the year. Bernanke linked the recent softening in the U.S. economy to gas prices which have surged alongside crude oil prices since February and supply bottlenecks from Japan in the wake of the massive quake and tsunami in March.

·         DOW -19.15 to 12,070.81

·         Dollar +.55c to 102.51c USD   

o   As the American dollar weakened against other currencies.
 

·         Oil +$.08 to $99.09USD per barrel  

·         Gold -$3.20 to $1544.00 per ounce

·         Canadian 5 yr bond yields markets +.03bps to 2.25. 

The spread (based on the NEW MERIX 5 yr rate published rate of 3.89%) is above the comfort zone at 1.64. The spread based on the quick close of 3.69% is 1.44.