• 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
