The CAD showed little movement against the greenback as US new home sales data declined. The slowing growth in US housing is raising concerns that slower growth for Canada?s largest trade partner will lead to a drop in exports and cut into the healthy trade balance.
The Caisse de dépôt et placement du Quebec and Onex Corp. dropped out of bidding for BCE Inc. as the 9am deadline approached. Neither company publicly commented about their withdrawal, but there has been speculation that it was due to competition Telus Corp. entering the bid and tight deadlines.
http://www.cbc.ca/money/story/2007/06/26/bcebids.html
[I]Source: CBC[/I]
Canada exports 1.6 million barrels of oil everyday to the United States. As the US?s biggest supplier of oil, ahead of Saudi Arabia and Venezuela, demand for Canadian oil is expected to double over the next eight years. In the year 2020, Canada may be producing as much as 5.3 million barrels a day.
http://www.canada.com/nationalpost/financialpost/story.html?id=3a131402-3d00-4b83-a158-fb68a997f664&k=28987 [I]Source: Financial Post[/I]
The TSX stumbled this morning after Talus Corp. withdrew its bid from BCE Inc., causing BCE?s shares to fall C$1.28. Toronto Stock Exchange?s main index was down 3.69 at 13,838.18 as BCE along with energy and raw materials companies weighed down the index.
http://www.bloomberg.com/apps/news?pid=20601082&sid=alX29Xw2IPTI&refer=canada[I]Source: Bloomberg
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[B]Currency[/B]
The CAD showed little movement against the greenback as US new home sales data declined. The slowing growth in US housing is raising concerns that slower growth for Canada?s largest trade partner will lead to a drop in exports and cut into the healthy trade balance. Although speculation of a rate hike has eased, interest rate futures suggest a boost is still in the works for the near future. The USDCAD was most recently quoted at 1.0680.
[B]Equity
[/B]Most recently quoted down 52 points at 13,789.33, the S&P/TSX was barraged by a decline in several sectors. BCE Inc., Canada?s biggest phone company, fell C$1.28 after a couple of companies withdrew from bidding in BCE?s buyout. Natural-gas producer EnCana Corp. dropped 39 cents along with the price of oil and gas. Barrick Gold Corp., Canada?s biggest gold producer, decreased 33 cents as gold dipped.
[B]Fixed-Income[/B]
The Canadian 10-yr bond fell today as the Bank of Canada continued to spout hawkish rhetoric. The 10-yr started the day above 95.5 and proceeded to decline to its most recently quoted price of 95.395. Interest rate futures continue to factor in 2 rate hikes one year out. The outcome of the Fed?s upcoming meeting is expected to remain static, as they hold the rate at 5.25%. With Canada due for two hikes, US-Canada bond spreads can be expected to narrow.
