Wednesday, July 20, 2011

Financial Update - Are rates on the rise?

Bank of Canada hints that rate hikes are coming sooner rather than later the bank’s decision to drop the word “eventually” in reference to the timing of its next rate hike suggests it will move before the end of the year.
·        TSX +78.78 to 13,332.92 (CPRising oil and copper prices helped push the TSX higher while some strong U.S. earnings reports helped briefly divert investor attention from government debt worries
·        DOW +202.26 to 12,587.42
·        Dollar +.88c to 105.17c USD   The Canadian dollar powered to its highest level against the U.S. dollar in 2-1/2 months after the Bank of Canada held its key interest rate steady, but hinted more firmly than before that it would resume increasing rates.
·        Oil -$1.57 to $97.50USD per barrel    amid a survey by Platts, the energy information arm of McGraw-Hill Cos., that crude inventories likely fell by 1.3 million barrels last week while gasoline supplies probably dropped 450,000 barrels.
·        Gold -$1.30 to $1601.10USD per ounce
Canadian 5 yr bond yields markets +.07bps to 2.19.  The spread (based on the MERIX 5 yr rate published rate of 3.84%) is at the top of the comfort zone at 1.65. The spread based on the quick close of 3.64% is mid comfort zone at 1.42 

Contact Amy Wilson 780-919-0475
Verico Brokers For Life

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