U.S. home sales hit low (in 2010):
However job growth is expected to double in 2011, a precursor to a housing recovery. Economists predict it will take two more years to reach a healthy level of 6 million units sold given the employment rate and the glut of foreclosures expected to hit in 2011.
http://www.canadianbusiness.com
* TSX -107.72 to 13,331.32 as commodity prices retreated amid fears China will make further moves to slow its economy to deal with inflation after news the economy grew by 9.8% in the 4th quarter, up from the previous quarter. As a result, market participants are expecting China to start to cool off the rate of growth that they have had.
* DOW-2.49 to 11,822.80
* Dollar -.16c to 100.29c USD With household debt worryingly high, considerable monetary policy stimulus in place, federal mortgage initiatives, and the Bank of Canada musing on ‘stretched household balance sheets,’ it is clear that rates in Canada are too low and are going to rise, just not in Q1, and not unconditionally.” Says David Watt with RBC Capital Markets
* Oil -$2.00 to $88.86 USD per barrel Roger McKnight Sr. petroleum analyst warned Canadian consumers to brace for higher gasoline prices in February or March. "The price of crude right now is 14 to 15 per cent higher than it was a year ago for absolutely no reason whatsoever, other than people are guessing that the U.S. economy is going to turn around, which will increase demand.. It should be at $80 a barrel”
* Gold -$23.70 to $1346.50 per ounce
Canadian 5 yr bond yields markets +.05bps to 2.57. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is bouncing about in mid comfort zone at 1.42.
http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
(courtesy of Barb Morgan, DBD Ontario SouthWest)
