Continuing yesterday?s climb, the Canadian dollar edged higher as oil prices rose above $76/bbl. Commodities including oil account for almost 50 percent of Canadian exports. A lack of economic data in Canada?s calendar left volatility in USDCAD relatively low.
Potash Corp. announced a $1.67-billion plan that will expand its mines into New Brunswick. The four year project is predicted to create 140 new full-time positions.
IMAX Corp. reported narrower first quarter losses of 12 cents a share compared to last year?s restated loss of 15 cents a share. After last year?s restated figures, the company announced that it has changed its accounting policies.
[I]Source: Financial Post[/I]
In an attempt to improve their pensions and other regulations, Union workers plan to strike against forestry companies Western Forest Products Ltd. and Timber West Forest Corp. The strike is due to take place this Friday at midnight.
[B]Currency Markets: USDCAD[/B]
Continuing yesterday?s climb, the Canadian dollar edged higher as oil prices rose above $76/bbl. Commodities including oil account for almost 50 percent of Canadian exports. A lack of economic data in Canada?s calendar left volatility in USDCAD relatively low. With expected higher retail sales data set for Monday?s docket, fresh highs could await the Loonie. The USDCAD was most recently traded at 1.0421.
[B]Equity Markets: S&P/TSX Index
[/B]The S&P/TSX index stumbled over drug producer Biovail Corp. A recent application for a new antidepressant was rejected by the US Food and Drug Administration, driving Biovail down $3.65 to $22.94. The index?s fall was softened by Royal Bank of Canada and Bank of Nova Scotia as they picked up 29 cents and 43 cents respectively. The S&P/TSX was most recently quoted down 23.36 points at 14,602.40.
[B]Fixed Income Markets: The Canadian Government 10-Year Bond
[/B]Bernanke?s testimony and more S&P downgrades reanimated subprime scares, prompting a “flight to quality” as the economies of the US and Canada are tightly interwoven. Over the last two days, Bernanke testified in front of the senate banking committee, noting the Fed?s growing concern over the deteriorating housing sector. Spooked investors worldwide parked their money in government safe havens. The Canadian 10-year bond was most recently quoted at 96.010, yielding 4.54 percent.