US markets are rising after a government report showed the economy expanded at a faster pace in Q2 than initially reported (although still less than estimates), and inflation figures came in below forecasts. The Fed's next interest rate meeting comes Sept 20th, and the probability is growing that they will remain on the sidelines. The TSX is down slightly as continued weakness in energy is partially offset by gains in gold. Shares of Bombardier dropped sharply this morning after the company reported a 50% decline in y-o-y profits. The TSX is down 29 pts. The Dow is up 16 pts.
Bonds jumped after the US reports and a smaller than expected trade surplus in Canada. The 5-year Canada yield has plunged to 4.04% and the 10-year to 4.13%. The Loonie is off 20 bps to US$.9010. Oil is down 41 cents to US.30, while Gold has jumped .80 to US6.90/oz.
