Wednesday, June 8, 2011

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

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.