Inflation Comes Home leading economists to predict that another strong reading in April could all but solidify an interest-rate hike in July.
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* TSX +34.50 to 13,736.83 led by gains in the mining sector on rising copper prices.
* DOW +85.16 to 12,266.75
* Dollar +.84c to 104.16c USD closed sharply higher after inflation data affirmed the view that the Bank of Canada will likely move to hike interest rates this summer. Data showed that increases in gasoline and food prices pushed the country's annual inflation rate up by 1.1 points to 3.3 per cent last month, the first time it has topped three per cent since September 2008.
* Oil +$1.03 to $108.15USD per barrel as the American greenback weakened against other major currencies. Crude, which is priced in dollars, tends to rise as the dollar falls and makes oil cheaper for those holding other currencies.
* Gold +$2.20 to $1495.10 per ounce The widely-traded June contract reached $1,500.50, before giving back some to settle at another new record high. Adding momentum to the move into gold was the continuing government debt crisis in the euro zone and growing signs of inflation.
* Canadian 5 yr bond yields markets +.07bps to 2.67. 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 1.67.
(information provided by Barb Morgan, DBD Ontario Southwest)
