Bank of Canada keeps short-term rates low, looks through stronger economy...
The central bank's surprisingly "dovish" statement suggests Canadians will be able to borrow at historically low interest rates for months to come.
Desjardins & Meridian credit unions to merge...
Desjardins Credit Union has agreed to amalgamate with the much larger Meridian Credit Union under the Meridian banner.
* TSX -5.42 to 14,131.08 (Reuters) as nervousness about supply pushed crude prices close to the US$100 a barrel mark and raised worries about the effect of higher oil on global economies and investors took in a widely expected move by the Bank of Canada to leave its key interest rate unchanged at one per cent.
* DOW -124.61 to 12,101.73 higher oil spooked New York markets as U.S. Federal Reserve Chairman Ben Bernanke warned that a prolonged rise in oil prices would pose a danger to the economy. But he says the more likely outcome is a temporary and modest increase in consumer prices, not runaway inflation.
* Dollar -.28c to 102.66c USD as the central bank warned of the negative effects of a rising currency. "The export sector continues to face considerable challenges from the cumulative effects of the persistent strength in the Canadian dollar and Canada’s poor relative productivity performance."
* Oil +$1.60 to $96.57USD per barrel as fighting in Libya continued to unnerve markets. Moammar Gadhafi, Libya’s ruler of 41 years, has already lost control of the eastern half of the country since protests demanding his ouster began two weeks ago. Prices have been volatile over worries about making up the shortfall from Africa's biggest crude producer and worries over whether the political upheaval will spread to other oil-rich countries.
* Gold +$21.30 to $1431.20 per ounce Gold stocks were the biggest advancer as investors seek a safe haven, sending the price to a new record high amid continuing concerns about political unrest in the Middle East, the impact of rising crude oil prices and a sagging stock market.
* Canadian 5 yr bond yields markets -.03bps to 2.60. The spread (based on the MERIX 5 yr rate published rate of 4.14%) is now at the top of the comfort zone at 1.54.
(courtesy of Barb Morgan, DBD Ontario Southwest)
