Yesterday
morning’s sell-off didn’t last long as the major averages turned a corner
around 9am and finished the day barely below water. Volume has been picking up
from the anaemic levels of the last two weeks. There were more advancing issues
than declining on the NYSE yesterday despite the small loss. The TSX index is
moderately higher this morning with gold shares doing most of the heavy lifting
as the metal approaches a five-month high. The ECB is set to announce a
sovereign bond-buying program at their policy meeting tomorrow which has
Italian and Spanish yields falling anew. The Bank of Canada kept its benchmark
rate steady at 1% this morning and maintained its bias toward gradual removal
of stimulus as it becomes necessary. The BoC is the only central bank among
the G7 not currently leaning toward more monetary easing. The TSX is up 20
pts. The Dow is up 17 pts.
The
Canadian dollar lost some of its steam after the rate announcement, falling 55
bps to US$1.0089. Bond yields are flat at 1.31% for the 5-year Canada and 1.74%
for the ten. Oil is down 63 cents to US$94.67/barrel. Gold is unchanged at
US$1696/oz.
Have
a great day.
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