Record merger and acquisition activity in Canada continues at a roiling boil with the announcements that ING Real Estate is snapping up Summit REIT and that Goldcorp will merge with Glamis Gold. Needless to say, the REIT's and gold sectors are rallying nicely this morning. Canadian GDP figures came out on the soft side with a 2% annual gain in Q2. Consumer spending in the US jumped by 0.8% last month, the most since January, while a measure of inflation rose just 0.1%. This gives the fed another reason to stay on the sidelines next month. The TSX is up 23 pts. The Dow is down 8 pts. Mortgage rates remain stable
Bonds have cruised to their highest levels since January as soft economic data continues to roll in. The 5-year Canada yields 4.01% and the 10-year 4.11%. The Loonie is holding ground at US$.9025. Oil has slipped 33 cents to US.70/barrel. Gold is up .60 to US1.70/oz.
