Traders continued to dump carry trades as investors lost confidence in corporate lending and mortgage-backed securities, dealing heavy blows to the Canadian dollar as well as many other higher-yielding currencies.
Lululemon Athletica Inc., Vancouver-based fitness and yoga-wear company, reported its shares will be priced at $18. Share prices topped expectations announced earlier this week of $15 to $17.
http://www.cbc.ca/money/story/2007/07/27/lululemontrade.html
[I]Source: CBC[/I]
Although business has been restrained by the strong Canadian currency and the higher price of raw materials, the business conditions survey indicated that manufacturers showed optimism toward current conditions. Second and Third quarter reports produced the strongest sentiment since October 2004.
http://www.canada.com/nationalpost/financialpost/story.html?id=8322b7fe-a7fb-44cb-a7d5-907ece3db208&k=18643
[I]Source: Financial Post[/I]
TransCanada Corp.?s second-quarter profit rose 5.3 percent on increasing sales from purchases of new pipelines and storage facilities. Net income rose from last year?s $244 million to $257 million this quarter.
Bloomberg - Are you a robot?
[I]Source: Bloomberg[/I]
[I]Currency Markets: USDCAD[/I]
Traders continued to dump carry trades as investors lost confidence in corporate lending and mortgage-backed securities, dealing heavy blows to the Canadian dollar as well as many other higher-yielding currencies. Risk aversion began yesterday as credit default swaps increased, prompting a flight to quality. The Canadian dollar was able to moderate its decline, finding support from a better-than expected business conditions survey. The survey, expected to read at 1.0, was able to pull off a 6.0 print. The Canadian dollar was last quoted at 1.0590 going into the weekend.
[I]Equity Markets: S&P/TSX Index[/I]
After showing a short-lived relief from yesterday?s loss, the S&P/TSX index dipped back into negative territory. Blackberry producer Research In Motion led the descent, shaving over 9 points from the index as its shares dropped to $229.50. However, early morning gains from energy producers such as EnCana and rebounds from the financial sector such as Royal Bank of Canada were able to ease the drop. After losing as much as 260.72, the S&P/TSX was most recently quoted down 97.75 points at 13,746.85.
[I]Fixed Income Markets: Canadian Government 10-Year Bond[/I]
As risk aversion prevailed in today?s market, investors parked their money in government bonds. The TSX as well as equity markets abroad absorbed fierce blows for the second straight day, making the risk free securities even more appealing. With credit scares still making a defined presence, yields may continue to fall. The 10-year government bond was most recently quoted at 96.375, yielding 4.49 percent.
