The Canadian dollar headed lower on the release of a 0.2 percent decline in June?s headline inflation. The softer-than-expected consumer price index read suggested the Bank of Canada may suspend any immediate policy action with regards to hiking interest rates.
Shell Canada Ltd. is reviewing its investments in Canada. Evaluations include plans for a new refinery near Sarnia, Ontario, and a possible $16.2-billion Mackenzie Gas Project.
[I]Source: Financial Post[/I]
With homeownership costs rising, core inflation read higher at 2.5 percent. Increases in CPI figures continue to be the focus of the Bank of Canada?s concerns.
In an attempt to cut costs, Nortel Networks Co. will move a “significant” amount of development jobs to China. CEO Mike Zafirovski has already cut jobs and sold components of the company to reduce costs.
[B]Currency Markets: USD/CAD[/B]
The Canadian dollar headed lower on the release of a 0.2 percent decline in June?s headline inflation. The softer-than-expected consumer price index read suggested the Bank of Canada may suspend any immediate policy action with regards to hiking interest rates. As interest rate futures pare their bets on increases in the overnight lending rate, Loonie bulls watched the potential for US dollar parity slip through their hands. The USD/CAD was most recently quoted at 1.0428.
[B]Equity Markets: S&P/TSX Index[/B]
The S&P/TSX moved forward today on buyout speculation for Canadian Pacific Railway, the country?s largest railroad company. The Toronto stock exchange halted Canadian Pacific share trading, which had already appreciated 21 percent from yesterday?s close, after Brookfield Asset Management Inc. submitted a takeover bid. Moderating the index?s gains, Husky Energy Inc. dropped 17 cents as CFO Geoff Barlow resigned. Canada?s leading equity benchmark was most recently quoted up 28.84 points at 14,410.85.
[B]Fixed Income Markets: Canadian Government 10-Year Bond[/B]
Canadian 10-year yields took a hit today as inflation data printed lower than expected, suppressing a rate increase from the Bank of Canada. Canadian banker?s acceptance futures edged down, suggesting a reevaluation of monetary policy outlooks. The Canadian government 10-year bond was most recently traded at 95.562, yielding 4.61 percent.