Canadian firms still bullish, but fret about high oil, food prices and loonie...
The central bank said its new spring business outlook survey shows firms remain bullish about the future, but less so than three months ago.
Canada's big banks raising residential mortgage rates ahead of busy period...
· TSX +88.20 to 14,218.35 Closed higher on major deal-making in the mining sector while energy stocks advanced as crude oil rose to a fresh two-and-a-half year high. China’s Minmetals Resources Ltd. is launching a C$6.3 billion unsolicited bid for Equinox Minerals, which is dual-listed on the Toronto and Australian exchanges.
· DOW +23.21 to 12,400.03
· Dollar -.33c to 103.36c USD The potential effect of the Equinox deal on the loonie could be difficult to decipher however it does appear to be a Canadian dollar cash deal which could push the dollar higher. A foreign buyer acquiring a Canadian company will need Canadian currency to close the deal, boosting demand for the loonie on financial markets.
· Oil +$.53 to $108.47USD per barrel The price of oil jumped to a fresh 30-month high, as fighting in Libya and unrest in the Middle East continued to raise doubts about future supplies.
· Gold -$4.10 to $1433 per ounce
· Canadian 5 yr bond yields markets -.02bps to 2.76. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is far below the comfort zone at 1.28. These spreads have already caused 5 lenders to increase 5yr fixed rates by .35bps- 40bps, so get any fixed applications in early today as we expect to see movement in our rates also.
(courtesy of Barb Morgan, DBD Ontario Southwest)
