Financial Update: Friday June 29, 2011

• TSX -+15.11 to 13047.78
The Toronto stock market closed little changed Thursday as investors frustrated with the failure of American lawmakers to raise the country's debt limit looked ahead to a vote in the U.S. House of Representatives later in the day.

• DOW -.62.44 to 12240.11
Stocks sank for the fifth straight session on Thursday as political wrangling over the U.S. deficit continued to unnerve Wall Street

• Dollar -16c to 105.04 USD 

• Oil +0.33 to $97.22USD per barrel 

• Gold -.70 to $1616.50USD per ounce 

• Canadian 5 yr bond yields markets -.01bps to 2.15.
The spread (based on the MERIX 5 yr rate published rate of 3.84%) is at the top of the comfort zone at 1.69. The spread based on the quick close of 3.64% is creeping up but still mid comfort zone at 1.49

Financial Update: Thursday July 28, 2011

• TSX -267.89 to 13032.67 

The Toronto stock market tumbled as investors grow increasingly pessimistic about the potential economic consequences of a U.S. failure to raise its debt limit.

• DOW -.193.75 to 12302.55 

Stocks sank for the fourth straight session on Wednesday as political wrangling over the U.S. deficit continued to unnerve Wall Street

• Dollar -62c to 105.20 USD 

• Oil -2.34 to $96.89USD per barrel 

• Gold -8.00 to $1617.20USD per ounce 

• Canadian 5 yr bond yields markets -.02bps to 2.14. 

The spread (based on the MERIX 5 yr published rate of 3.84%) is at the top of the comfort zone at 1.70. The spread based on the quick close of 3.64% is creeping up but still mid comfort zone at 1.50

Financial Update: Wednesday July 27, 2011

• TSX -135.39 to 13300.56 

• DOW -.91.50 to 12,501.30

• Dollar +38c to 105.82c USD 

• Oil +.14 to $99.23USD per barrel 

• Gold +5.90 to $1625.20 USD per ounce 

Gold approached an all-time high as investors sought to protect their wealth against the possibility of a U.S. default that may come as soon as next week amid a standoff over the country’s $14.3 trillion debt limit. 

• Canadian 5 yr bond yields markets -.03bps to 2.16. 

The spread (based on the MERIX 5 yr published rate of 3.84%) is at the top of the comfort zone at 1.68. 

The spread based on the quick close of 3.64% is creeping up but still mid comfort zone at 1.48.

Financial Update: Tuesday July 26, 2011

• TSX -58.68 to 13435.95

• DOW -.88.36 to 12,592.80

• Dollar -.03c to 105.44c USD

• Oil -.11 to $99.09USD per barrel 

• Gold +2.60 to $1617.50USD per ounce 

• Canadian 5 yr bond yields markets -.01bps to 2.19. The spread (based on the MERIX 5 yr rate published rate of 3.84%) is at the top of the comfort zone at 1.65. The spread based on the quick close of 3.64% is mid comfort zone at 1.45

Financial Update: Friday July 22, 2011

· TSX +93.47 to 13,434.30 (CP) 

Bank and energy stocks led the way to a solid advance as Eurozone leaders announced a new plan to deal with the Greek government debt crisis. Eurozone leaders say that, together with the International Monetary Fund, they will give Greece a second bailout worth euro 109 billion (US$155 billion). But banks and other private investors will also share in the heavy lifting — they will contribute some euro37 billion to the rescue package.

· DOW +152.50 to 12,724.41

· Dollar +.23c to 105.78c USD 

The Canadian dollar was on a tear, after earlier running up as high as 106.11 cents US, its highest level since late November 2007. The loonie has surged about 1.5 cents since Tuesday when the Bank of Canada indicated that interest rates will rise from their current level of one per cent. Analysts say higher rates and favorable economic conditions should keep the dollar well above parity.

· Oil +$.73 to $99.13USD per barrel

· Gold -$9.90 to $1587 USD per ounce bullion prices declined for a third day.

· Canadian 5 yr bond yields markets +.03bps to 2.27.

The spread (based on the MERIX 5 yr published rate of 3.84%) is at the top of the comfort zone at 1.57. The spread based on the quick close of 3.64% is mid comfort zone at 1.37.

Financial Update: Wednesday July 20, 2011

• TSX +78.78 to 13,332.92 (CP) 

Rising oil and copper prices helped push the TSX higher while some strong U.S. earnings reports helped briefly divert investor attention from government debt worries.

• DOW +202.26 to 12,587.42 

• Dollar +.88c to 105.17c USD 

The Canadian dollar powered to its highest level against the U.S. dollar in 2-1/2 months after the Bank of Canada held its key interest rate steady, but hinted more firmly than before that it would resume increasing rates.

• Oil -$1.57 to $97.50 USD per barrel 

Amid a survey by Platts, the energy information arm of McGraw-Hill Cos., that crude inventories likely fell by 1.3 million barrels last week while gasoline supplies probably dropped 450,000 barrels.

• Gold -$1.30 to $1601.10 USD per ounce 

• Canadian 5 yr bond yields markets +.07bps to 2.19. 

The spread (based on the MERIX 5 yr published rate of 3.84%) is at the top of the comfort zone at 1.65. 

The spread based on the quick close of 3.64% is mid comfort zone at 1.42 

Financial Update: Monday July 18, 2011

• TSX +46.62 to 13,299.54 (CP) racks up slight gain amid worse than expected U.S. consumer sentiment data

• DOW +42.61 to 12,479.73 

• Dollar +.73c to 104.79c USD
Amid a new warning on U.S. debt and rising commodity prices. Standard & Poor’s said there is a 50 per cent chance it will downgrade the U.S. government’s credit rating within 3 months because of the congressional impasse over approving an increase in the debt ceiling. The rating agency said it is placing the United States triple-A rating on a credit watch.

• Oil +$1.55 to $97.24 USD per barrel 

• Gold +$.80 to $1590.10 USD per ounce closed to another new record high

• Canadian 5 yr bond yields markets -.08bps to 2.13. 

The spread (based on the MERIX 5 yr rate published rate of 3.84%) is over the top of the comfort zone at 1.71. 

The spread based on the quick close of 3.64% is now mid comfort zone at 1.51 

Financial Update: Friday July 15, 2011

• TSX -72.02 to 13,252.92 (CP) 

Gave up an early, solid gain to close lower as traders mulled over what the U.S. Federal Reserve is prepared to do to help the economic recovery. Investors took Bernanke’s earlier remarks to mean that the Fed chairman had all but guaranteed new action to stimulate the economy, but they realize now that’s not the case. 

• DOW +44.73 to 12,491.61 

Negotiations over raising the national debt entered a perilous endgame as Wall Street warned of catastrophe if the U.S. defaults on its obligations for the first time. Obama's blunt declaration that "enough is enough" as Wednesday's talks ended did nothing to quell the rancour as a new day of positioning and posturing began. Investors also absorbed a warning that the United States may lose its key triple-A credit rating.

• Dollar -.14c to 104.06c USD 

• Oil -$2.36 to $95.69USD per barrel 

Oil dropped more than two per cent Thursday after U.S. Federal Reserve chairman Ben Bernanke said the government would not immediately pump more cash into economic stimulus programs. 

• Gold +$3.80 to $1589.30USD per ounce Nervous investors bid bullion higher to a fresh record close. 

• Canadian 5 yr bond yields markets +.04bps to 2.21. The spread (based on the MERIX 5 yr published rate of 3.84%) is at the top of the comfort zone at 1.63. The spread based on the quick close of 3.64% is now at the bottom comfort zone at 1.43

Financial Update: Thursday July 14, 2011

• TSX +90.86 to 13,324.94 (CP) on comments from Federal Reserve chairman Ben Bernanke that he is prepared to further stimulate the faltering U.S. economy and gold prices that hit a new record.

• DOW +44.73 to 12,491.61 

• Dollar +.70c to 104.20c USD as strong Chinese growth data helped drive commodity prices higher. The currency was also lifted by comments by U.S. Federal Reserve chairman Ben Bernanke.

• Oil +$.62 to $98.05USD per barrel 

• Gold +$23.20 to $1585.50 USD per ounce
Gold glitters to close at a new RECORD HIGH closing price on continuing fears over debt crises unfolding in Europe and the U.S., which has yet to craft a plan to avoiding defaulting on its obligations by raising the country’s debt ceiling. Europe’s problems also appeared no closer to resolution.

• Canadian 5 yr bond yields markets +.02bps to 2.17.
The spread (based on the MERIX 5 yr rate published rate of 3.84%) is at the top of the comfort zone at 1.67.
The spread based on the quick close of 3.64% is mid comfort zone at 1.47

Financial Update: Tuesday July 12, 2011

• TSX -191.95 to 13,179.75 (CP)

The Toronto stock market sold off across all sectors in another round of worry about the Eurozone debt crisis spreading to larger economies. Worries Italy could be engulfed in the financial crisis pushed the interest rate on a 10-year Italian bond up to 5.64 per cent while the rate on the German equivalent, considered the safest in the Eurozone, traded at 2.67 per cent. Investors want a higher interest rate or return on Italian bonds because of perceived risk of default.

• DOW -151.44 to 12,505.76

Sentiment on markets was already downbeat after Washington announced Friday that the American economy created just 18,000 jobs in June, which was a fraction of the figure expected.

• Dollar -.89c to 103.20c USD as traders fled to the safe-haven status of U.S. Treasury's

• Oil -$1.05 to $95.15USD per barrel Prices for oil and metals fell back as the U.S. dollar strengthened. A stronger greenback usually helps depress commodity prices, which are denominated in dollars, as it makes items such as oil and metals more expensive for holders of other currencies.

• Gold +$7.60 to $1549.20USD per ounce Investors looking for safety also pushed gold prices higher.

• Canadian 5 yr bond yields markets -.10bps to 2.14.

The spread (based on the NEW MERIX 5 yr published rate of 3.84%) remains the same over the top of the comfort zone at 1.70

Financial Update: Monday July 11, 2011

• TSX -34.30 to 13,371.70 (CP)

Dragged down by resource stocks as oil and metal prices retreated amid U.S. employment numbers which reinforced fears that the American economy is stuck in a soft patch.

• DOW -62.29 to 12,657.20

• Dollar -.22c to 104.09c USD

• Oil -$2.47 to $96.20 USD per barrel 

Following the American jobs report

• Gold +$11.00 to $1541.60 USD per ounce

• Canadian 5 yr bond yields markets -.10bps to 2.24.

The spread (based on the MERIX 5 yr rate published rate of 3.94%) is over the top of the comfort zone at 1.70.

The spread based on the quick close of 3.74% is now in the middle of the comfort zone at 1.50

Financial Update: Friday July 8, 2011

• TSX +2.90 to 13,406.00 (CP) 

Lost most of its early gains and closed barely ahead at the end of trading due to losses in telecom and industrial stocks.

• DOW +93.47 to 12,719.49 

Payroll firm ADP reported that the American private sector created 157,000 jobs last month. Economists had expected the economy to crank out a total of 90,000 jobs.

• Dollar +.75c to 104.31c USD the highest close since May 10. 

• Oil +$2.02 to $98.67USD per barrel 

The market found support from energy stocks as oil prices got a boost from positive American employment news. 

• Gold +$1.40 to $1530.60 USD per ounce

• Canadian 5 yr bond yields markets +.08bps to 2.34. 

The spread (based on the MERIX 5 yr published rate of 3.94%) is now back within the comfort zone at 1.60. 

The spread based on the quick close of 3.74% is now at the very bottom of the comfort zone at 1.40

Financial Update: Thursday July 7, 2011

• TSX -22.20 to 13,403.10 (CP) Ended a six-day streak of gains as an interest rate hike in China, the third this year, and Europe's debt woes pushed oil and gas shares sharply lower

• DOW +56.15 to 12,626.02 .

• Dollar -.26c to 103.56c USD .

• Oil -$.24 to $96.65USD per barrel A stronger US dollar and the Chinese rate hike pushed down oil and other commodity prices on fears of reduced demand

• Gold +$16.50 to $1529.20USD per ounce Gold soared for a second day as markets worried about European debt and slowing Chinese growth

• Canadian 5 yr bond yields markets -.02bps to 2.26.

The spread (based on NEW MERIX 5 yr published rate of 3.94%) is back above the comfort zone at 1.68.

The spread based on the NEW quick close of 3.74% is now comfortably settled into the middle of the comfort zone at 1.48

Financial Update: Wednesday July 6, 2011

• TSX +38.81 to 13,425.30 (CP)

Surging prices for oil and gold helped drive the Toronto stock market higher, its sixth straight positive close.

• DOW -12.90 to 12,569.87

Ratings agency Moody's has downgraded Portugal's government debt to junk status, citing the growing risk the country will need a second rescue package and concerns it will not meet its debt reduction targets. 

• Dollar -.26c to 103.82c USD. 

• Oil +$1.95 to $96.89USD per barrel on hopes for higher demand 

• Gold +$30.10 to $1512.70 USD per ounce Concerns about global debt problems helped push gold prices higher

• Canadian 5 yr bond yields markets -.03bps to 2.28. 

The spread (based on the NEW MERIX 5 yr published rate of 3.94%) is back above the comfort zone at 1.66. 

The spread based on the NEW quick close of 3.74% is now comfortably settled into the middle of the comfort zone at 1.46 (Rate Specials Summary below) 

Financial Update: Tuesday July 5, 2011

• TSX +85.62 to 13,386.49 (CP) 

Racked up another solid gain Monday as investors reacted belatedly to a strong U.S. manufacturing report and higher oil and gold prices. There are high hopes that the second half will yield better results than the first of the year.

• DOW + closed for Independence Day although oil and gold were up in electronic trading.

• Dollar +.40c to 104.08c USD in the wake of strong economic reports last week that could help persuade the Bank of Canada to raise its key interest rates later in the year. 

• Oil +$. to $94.94USD per barrel 

• Gold to $1482.30USD per ounce 

• Canadian 5 yr bond yields markets -.02bps to 2.31. 

The spread (based on the MERIX 5 yr rate published rate of 3.79%) of the comfort zone at 1.48. The spread based on the quick close of 3.59% is well below the bottom of the comfort zone at 1.28 and is at risk of ending.

Financial Update: Monday July 4, 2011

TSX +111.93 to 13,300.87 ended the last trading day of the quarter Thursday with a fourth consecutive session of gains. Traders took in modestly positive Canadian economic growth data and news that Greece's controversial austerity measures will go ahead. A pickup in manufacturing in the U.S. also pushed indexes higher, before closing for Friday Canada Day
 

DOW +152.92 Thur, 168.43 Fri to 12,582.77   U.S. data showed that slightly fewer people applied for unemployment benefits last week, but the level of claims is still high at 428,000.
 

Dollar +.65c Thurs, +.60c Fri to 104.33c USD   after Statistics Canada reported that real gross domestic product was unchanged in April compared with March, as both the goods producing and services sectors remained flat. Economists had been expecting a 0.1 per cent decline

Oil +$.65 Thurs, -$.48 Fri to $94.94USD 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 -$7.60 Thurs, -$20 Fri to $1482.30USD per ounce  
 

Canadian 5 yr bond yields markets +.03bps to 2.33.  The spread (based on the MERIX 5 yr rate published rate of 3.79%) of the comfort zone at 1.46. The spread based on the quick close of 3.59% is well below the bottom of the comfort zone at 1.26 and is at risk of ending.