Outlook negative: Chance of S&P U.S. downgrade rattles markets...
S&P noted that U.S. policymakers have yet to agree on how they will change the course of recent fiscal deterioration.
CDN bond yields are lower due to the demand for an alternative to US treasuries.
* TSX -96.79 to 13,702.33 markets around the world were rattled following bad marks given to the U.S. government's debt by a rating agency. TSX was also influenced by a drop in the highly influential price of oil after Saudi Arabia announced that it cut daily output to 8.3 million barrels in March from 9.1 million barrels in February because of what it saw as excess global supply.
* DOW -140.24 to 12,201.59 US stocks plunged after ratings agency Standard & Poor's issued its first warning on US sovereign debt, citing Washington's looming debt and fiscal deficits and lowered its’ outlook to "negative" from "stable," but said the United States had until 2013 to come up with a credible plan for addressing its financial problems.
* Dollar -.45c to 103.71c USD amid a sharp decline in oil prices, while the American dollar strengthened against other currencies. "The idea that the U.S. public finances are on an unsustainable trajectory is hardly new news," said a commentary from Capital Economics.
* Oil -$2.54 to $107.12USD per barrel.
* Gold +$6.90 to $1492.90 per ounce bullion prices advanced after the S&P announcement as the June contract rose to a fresh record close.
* Canadian 5 yr bond yields markets -.07bps to 2.60. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.74.
