Spring will arrive early!
“Are there billions of dollars of extra money available for big new spending programs? No, and there will be no big new spending programs in this budget.”
Iceland lowers key lending rate by a quarter point to 4.25 pct as financial system steadies.
The rate peaked at 18 per cent in October 2008, when the country's banking system collapsed under the strain of the worldwide credit squeeze.
· TSX +160.63 to 13,712.62 as stocks got a lift from a strong showing in the U.S. manufacturing sector.
· DOW +148.23 to 12,040.16 Traders were pleased with data showing that the U.S. factory sector expanded in January at the fastest pace in seven years, as manufacturers reported a sharp jump in new orders causing the Dow to close above 12,000 for the first time since June 2008.
· Dollar +1.07c to 100.92c USD surged more than a cent as risk aversion receded. The U.S. dollar weakened against other currencies, including the euro, as Standard & Poor’s gave Spain a welcome boost by affirming its AA credit rating. The move was another sign that the government debt crisis that threatened to sink the European currency has come off the boil, at least for the moment. S&P became the second major credit agency in as many days to downgrade its rating on Egypt
· Oil -$1.42 to $90.77 USD per barrel oil prices relaxed however supply worries and data showing strong expansion in the U.S. manufacturing sector last month pushed copper up nine cents to a record close of US$4.55 a pound
· Gold +$5.80 to $1340.30 per ounce
· Canadian 5 yr bond yields markets +.07bps to 2.56. The spread (based on the MERIX 5 yr rate published rate of 3.99%) is centred in the comfort zone at 1.43.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
