The TSX is extending last weeks solid 3.5% gain, and looking to finish July in the green after two consecutive negative months. Materials and Energy led the way last week. Profits will take center stage in Canada this week with earnings season kicking into high gear. Canadian GDP was virtually flat in May, missing average estimates of 0.2% growth, and giving the BoC yet another reason to stay on the sidelines. The US Fed meets next Tuesday and has been faced with the same barrage of lacklustre economic data. The TSX is up 24 pts. The Dow is down 15 pts.
Bonds caught fire last week with sluggish US data, and are building on the gains this morning after the GDP report. The 5-year Canada yields 4.18% and the 10-year 4.31%. The Loonie has remained stable despite a generally weak greenback, currently at US$.8853. Oil is flat at US.30/barrel. Gold is down .40 to US1.40/oz.
