Monday, August 22, 2011

Financial Update: Monday August 22, 2011

• TSX -179.24 to 12,007.47 (CP)
As investors fretted about whether the U.S. and global economies are headed for another recession that could punish corporate earnings and sap consumer confidence. Traders digested comments from Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney, who testified before the Parliamentary finance committee about the state of Canada's economy after two weeks of frenzied trading on stock markets. Flaherty told the committee the current global economic turmoil will impact the Canadian economy, but so far his budget projections remain on track. Carney, said the U.S. is facing its weakest recovery since the Depression, but is not headed toward another recession.

• DOW -172.93 to 10,817.65
Investors have been trading emotionally since the beginning of August and the latest push into panic mode was a woeful manufacturing survey Thursday from the Federal Reserve Bank of Philadelphia

• Dollar -$.02c to 101.15c USD.

• Oil -$.12 to $82.26USD per barrel

• Gold +$30.00 to $1848.90 USD per ounce closed at its latest record high after earlier spiking as high as $1881.

• Canadian 5 yr bond yields markets 0bps to 1.41.
The spread (based on the NEW MERIX 5 yr rate published rate of 3.59%) is above the comfort zone at 2.18. The spread based on the NEW 5yr quick close rate of 3.39% is above the comfort zone at 1.98
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Friday, August 12, 2011

Financial Update: Friday August 12, 2011

  • TSX +340.91 to 12,539.80 (CP) 
    • Gained for a third day as bargain-hunters were out in full force to buy up stocks beaten down over several weeks of market chaos.
  • DOW +423.37 to 11,143.31 
    • New York benefited the most from the search for under priced stocks, racking up gains of more than four per cent even as worries continued about the European debt crisis and a weakening American economy.
  • Dollar +$.66 to 101.18 USD 
    • Amid higher oil prices and strong gains on North American equity markets.
  • Oil +$2.83 to $85.72USD per barrel 
  • Gold -$32.80 to $1751.50USD per ounce 
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Thursday, August 11, 2011

Financial Update: Thursday August 11, 2011

  • TSX +89.63 to 12,198.89 (CP) 
    • The rise was due in large measure to gold stocks which rose as fresh worries about the European debt crisis pushed bullion past the US$1,800 mark for the first time and oil stocks driven higher by surging prices. Despite the positive showing on the TSX, volatility continued to rule the market with the main index down as much as 192 points earlier in the session.
  • DOW -519.83 to 10,719.94 
    • The central problems confronting markets remain: dwindling confidence in political leaders and central bankers to get a grip on the European government debt crisis and a growing conviction that the U.S. is sliding back into recession. This market is not trading on fundamentals, it's trading on fear. Problems in focus were concerns that France could lose its AAA rating on government debt. Some analysts have warned that France — the world's fifth-biggest economy — can't afford to keep bailing out poorer European state
  • Dollar -$1.64 to 100.52 USD 
    • After the U.S. Federal Reserve promised to leave interest rates ultra-low until mid-2013. Investors believe the Fed's stance on rates likely means the Bank of Canada is in no hurry to resume hiking interest rates. Markets had until recently expected that the central bank would start moving on rates this fall. 
  • Oil +$3.59 to $82.89USD per barrel 
  • Gold $+41.30 to $1784.30USD per ounce 
    • Traders looking for safety continued to send bullion prices further into record territory, charging to another new record high close.
The spread (based on the MERIX 5 yr rate published rate of 3.69%) is above the comfort zone at 2.34. The spread based on the quick close of 3.49% is above the comfort zone at 2.14.
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Tuesday, August 9, 2011

Financial Update: Tuesday August 9, 2011

  • TSX -491.21 to 11,670.96 
    • Dragging the TSX below the 12,000 benchmark after an unprecedented credit rating downgrade of U.S. government debt by Standard and Poor's added momentum to a four-week-old sell-off, to its lowest close in a year and the biggest one-day drop since December 1, 2008.

  • DOW -634.76 to 10,809.85 
    • Plunged below the 11,000 mark as Standard & Poor's also on Monday downgraded the credit ratings of mortgage lenders Fannie Mae, Freddie Mac, which between them own or guarantee about half of all U.S. mortgages, and other agencies linked to long-term U.S. debt. Their downgrade could mean higher mortgage rates for consumers. Investors were unimpressed with remarks from U.S. President Barack Obama early in the afternoon where he essentially dismissed the S&P downgrade. He tried to reassure investors and the public that the nation's leaders need only show more "common sense and compromise" to tame a staggering accumulation of debt.

  • Dollar -$1.25 to 100.92 USD 
    • As nervous investors piled into U.S. Treasury's and precious metals while demand concerns sent oil and metal prices reeling.
  •  Oil -$5.57 to $81.31 USD per barrel 
    • Concerns the U.S. economy could be slipping back into recession and demand worries continued to push oil to its lowest price of the year.

  • Gold $+61.40 to $1713.20 USD per ounce charging to a new record high close.

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Monday, August 8, 2011

Financial Update: Monday August 8, 2011

  • TSX -217.96 to 12,162.17   
    • Another whipsaw session after having plummeted almost 500 points earlier in the day as a stronger than expected U.S. jobs report failed to reassure investors already worried about a slowing American economy and a lack of leadership in coming to grips with the European debt crisis.
  • DOW +60.93 to 11,444.61 
    • The announcement that 117,000 were created in July was simply not enough to brighten investors' mood. The rise was higher than the approximately 80,000 jobs that economists expected. Also, the jobless rate edged down 0.1 per cent to 9.1 per cent.
  • Dollar +$.15 to 102.24 US

  • Oil +$.25 to 86.88USD per barrel 
    • Losses a day after the TSX racked up its biggest single-session decline in more than two years, were led by sliding resource stocks amid investor sentiment that slowing economic conditions will heavily impact demand. It added up to a loss of six per cent or 783 points this week, leaving the TSX down almost 10 per cent year to date.
  • Gold $-7.40 to $1648.80USD per ounce


Canadian 5 yr bond yields markets +.11bps to 1.78. The spread (based on the MERIX 5 yr rate published rate of 3.69%) is above the comfort zone at 1.91. The spread based on the quick close of 3.49% is above the comfort zone at 1.71.
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Friday, August 5, 2011

Financial Update: Friday August 5, 2011

  • TSX -435.90 to 12380.13 
    • North American stock markets took a hammering Thursday as investors grew ever more pessimistic about the economy with evidence mounting that a serious slowdown may be under way.
  • DOW -512.76 to 11383.34 
  • Dollar -1.82 to 102.04 USD 
  • Oil -6.84 to 85.63USD per barrel 
  • Gold -11.80 to $1652.50USD per ounce 

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Wednesday, August 3, 2011

Financial Update: Wednesday August 3, 2011

• TSX -193.31 to 12752.32 (Reuters) - Toronto's main stock index fell hard on Friday morning as commodity prices slid on fears of another Chinese rate hike and the ability of some euro zone countries to service their debts.

• DOW -265.87 to 11866.62 

• Dollar -74c to 103.85 USD 

• Oil -1.47 to 93.82USD per barrel 
Crude oil prices fell on Tuesday on concerns for the US economy, despite a critical debt deal to avert a default, analysts said.

• Gold +33.30 to $1656.60USD per ounce.

The spread (based on the MERIX 5 yr published rate of 3.84%) is above the comfort zone at 1.97. 
The spread based on the quick close of 3.64% is above the comfort zone at 1.77

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