The Canadian dollar rose as investors speculated that equity markets, which have recently been driving currency markets, have stabilized after last week?s stock plunge sent the Canadian dollar back to prices it hadn?t seen since June. As stock markets worldwide opened higher today, the downward pressure was lifted from the Loonie.
Talisman Energy Inc. plans to sell $815 million of its North American assets. The company said "These are predominantly low working interest, non-operated assets, which include over 2,000 well bores."
Nortel Networks Corp. posted a loss in its second quarter earnings on declining sales, restructuring, and other miscellaneous charges. Nortel reported earnings of $37 million, or 7 cents per share, down form last year?s $342 million, or 79 cents per share.
[I]Source: Financial Post[/I]
Canadian Natural Resources Ltd. reported lower earnings in absence of last year?s tax gains. The natural-gas producer said profits fell from last year?s $1.04 billion, or $1.93 a share, to $841 million, or $1.56 a share.
[B]Currency Markets: USDCAD[/B]
The Canadian dollar rose as investors speculated that equity markets, which have recently been driving currency markets, have stabilized after last week?s stock plunge sent the Canadian dollar back to prices it hadn?t seen since June. As stock markets worldwide opened higher today, the downward pressure was lifted from the Loonie. Additional dollar strength was found from already lofty oil prices edging higher as oil together with other commodities make up almost half of Canadian exports. The Canadian dollar climbed against the US dollar to reach its most recently quoted price of 1.0525.
[B]Equity Markets: S&P/TSX Index[/B]
The S&P/TSX rebounded from yesterday?s 1.5 percent decline. The financial sector absorbed a severe blow yesterday amid concerns that hedge fund losses would impact banks? earnings. However, as markets stabilized, concerns evaporated, boosting yesterday?s loosing financial sector. Royal Bank of Canada took led the advance, picking up C$1.02 to C$54.79 a share, followed by Toronto Dominion Bank gaining C$1.09 to C$68.89 a share. Gains were limited by Nortel?s C$1.62 loss to C$21.30, following a drop in its second quarter earnings report. The S&P/TSX index was most recently quoted up 73.33 points to 13,728.07.
[B]Fixed Income Markets: Canadian Government 10-Year Bond[/B]
Yields fell on the Canadian government 10-year bonds as investors prepared for tomorrow?s forecasted lackluster housing and PMI results. With significant decreases projected in building permits and Ivey?s purchasing managers? index, investors speculated that the Bank of Canada will be encouraged to suspend increasing the overnight lending rate. The Bank of Canada raised the interest rate on July 10th, stating there will be a “modest” need to further control inflation. The Canadian government 10-year bond was most recently quoted at 96.290, yielding 4.51 percent.