Why we might see a rate hike sooner rather than later...
The economy is growing much faster than the bank expected
Old-time wisdom for a new world...
"To compete in the new economy we are entering, you need to treat your customers like your great-grandfather did, and test like a scientist."
• TSX -67.88 to 14,202.65 as gold stocks failed to respond to bullion prices moving further into record territory while energy stocks backed off as crude approached the US$109 level.
• DOW +32.85 to 12,426.75 The European debt crisis was sharply in focus after Portugal’s prime minister said his country will ask for a bailout due to its high debts and difficulty raising money on international markets.
• Dollar +.37c to 104.12c USD rockets to a 3 ½ year high due to record prices hit with gold and copper. The U.S. dollar also weakened against the euro a day before the European Central Bank is expected to make its first rate hike in nearly three years to deal with inflation.
• Oil +$.49 to $108.83USD per barrel
• Gold +$6.00 to $1458.50 per ounce Gold prices rose to another new record high as investors looked for safe havens amid worries about risks ranging from political turmoil in Libya and the nuclear crisis in Japan to the threat of sovereign debt default in Europe as Moody’s downgraded Portugals long term credit rating.
• Canadian 5 yr bond yields markets +.04bps to 2.84. The spread (based on the NEW MERIX 5 yr rate published rate of 4.39%) now has lots of room at the top of the comfort zone at 1.55.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
