As oil prices trade near one year highs, the Canadian dollar climbed against the greenback, as commodities including oil account for almost half of Canadian exports. New York oil futures closed at $78.21/bbl on Wednesday, trumping last year?s July 14th record close.
New York oil futures closed at $78.21/bbl on Wednesday, trumping last year?s July 14th record close. Surging oil prices have buoyed Canadian energy companies despite this year?s risk averse sentiment.
http://www.cbc.ca/money/story/2007/07/31/oil.html
Source: CBC
BCE Inc. reported higher second quarter earnings, showing profits of $667 million compared with last year?s $494 million. Higher earnings came after Ontario Teachers’ Pension Plan $34.8 billion takeover of BCE.
http://www.canada.com/nationalpost/financialpost/story.html?id=15ddbebb-ccda-4758-853c-3e988ae40497&k=64158
Source: Financial Post
Canadian Finance Minister James Flaherty stated that recent growth in the Canadian dollar is infusing “stress” into Canadian exporters. The Canadian dollar has appreciated almost 10 percent against the US dollar in the past six months.
http://www.bloomberg.com/apps/news?pid=20601082&sid=a1gtjnO84v9c&refer=canada
Source: Bloomberg
[B]Currency Markets: USDCAD[/B]
As oil prices trade near one year highs, the Canadian dollar climbed against the greenback, as commodities including oil account for almost half of Canadian exports. New York oil futures closed at $78.21/bbl on Wednesday, trumping last year?s July 14th record close. Loonie appreciation may be moderated by risk averse investors dropping volatile commodity currencies after Macquarie Bank Ltd reported its hedge funds suffered severe losses. The USDCAD was most recently traded at 1.0590.
[B]Equity Markets: S&P/TSX Index
[/B]The TSX opened with a 200 point dive as credit losses spurred panic within the financial sector. Earlier today, Australia?s Macquarie Bank Ltd was forced to sell-off assets to maintain the margin in some of its investment funds. With debt deterioration now perking up around the globe, traders sold off shares of financial institutions such as the Bank of Nova Scotia and the Royal Bank of Canada. The Bank of Nova Scotia fell $1.71 down to $48.28 and the Royal Bank of Canada dropped $1.42 to $52.63. The S&P/TSX, Toronto Stock Exchange?s leading benchmark, most recently fell 240.44 points to 13,628.19.
[B]Fixed Income Markets: Canadian Government 10-Year Bond[/B]
Government bonds were traders? pick of the morning with the TSX on target to suffer another big loss. As risk aversion continued to plague the Canadian markets, traders flocked to risk-free government bonds for protection. The Canadian government 10-year bond was most recently quoted at 96.265, yielding 4.51 percent.
