The Canadian dollar fell the most in two weeks, getting swept up in worldwide credit concerns as investors reduced their exposure to risky positions, including carry trades. Risk aversion began today as BNP Paribas froze three asset backed funds because of liquidity concerns, which was only exacerbated after the ECB, the Fed, the BoE, and the BoC took action to help stabilize liquidity in the market.
[B]Magna International tops estimates with blowout quarter[/B]
Ontario based Magna International raised its 2007 earnings forecast after reporting exceptional second quarter earnings. The auto parts giant said net income rose to $262 million or $2.35 per share in the second quarter, up 35 percent from the $193 million, or $1.75 per share, from a year earlier.
http://www.cbc.ca/money/story/2007/08/09/magna.html
[I]Source: CBC[/I]
[B]Bank of Canada Statement[/B]
Spurred by recent volatility in the market, the Bank of Canada issued a statement, ensuring its support of stability in the financial markets: "In light of current market conditions, the Bank of Canada would like to assure financial market participants and the public that it will provide liquidity to support the stability of the Canadian financial system and the continued functioning of financial markets?"
http://www.canada.com/nationalpost/financialpost/story.html?id=1a44efa5-faad-4643-a0ef-fc0bbfcd72f5&k=91630
[I]Source: Financial Post[/I]
[B]Canada[/B][B]'s Metro Says Profit Rises on Cost Reductions[/B]
Supermarket chain Metro Inc. reported a 4.9 percent increase in third quarter profits. The Montreal based company said net income rose $89.3 million, or 77 cents a share.
Bloomberg - Are you a robot?
[I]Source: Bloomberg[/I]
[I]Currency Markets: USDCAD[/I]
The Canadian dollar fell the most in two weeks, getting swept up in worldwide credit concerns as investors reduced their exposure to risky positions, including carry trades. Risk aversion began today as BNP Paribas froze three asset backed funds because of liquidity concerns, which was only exacerbated after the ECB, the Fed, the BoE, and the BoC took action to help stabilize liquidity in the market. The USDCAD was most recently quoted at 1.0577.
[I]Equity Markets: S&P/TSX Index[/I]
Today?s credit scares drove the S&P/TSX down as low as 200 points, before cutting losses by more than half. Credit trauma left its mark on equity markets around the globe as BNP Paribas halted withdrawals from three of its asset-backed funds. The financial sector was a primary target of investor concerns with Bank of Montreal falling C$2.12 to C$64.30 and Canadian Imperial Bank of Commerce dropping C$2.22 to C$90.60. Energy companies also declined as oil prices continued to slip to US$71.79/bbl, sending Suncor Energy falling 42 cents to C$96.05 and Canadian Natural Resources dropping 40 cents to C$71.82. The S&P/TSX Index was most recently quoted back down 153.48 points at 13,604.71.
[I]Fixed Income Markets: Canadian Government 10-Year Bond[/I]
Canadian government bonds yields edged down on credit concerns as risk aversion sent global fixed income markets higher. Furthermore, dour Canadian economic data encouraged government investments, pairing back the likelihood of a near-term increase in the overnight lending rate. The Canadian government 10-year bond was most recently quoted at 95.825, yielding 4.53 percent.
