The TSX is building on yesterdays gains as both gold and oil prices rise. A Dep't of Energy release showed crude inventories in the US fell more than expected last week. Natural gas prices also rose from a 10 week low as commodity traders take advantage of the slump in price. US markets are weak as speculation about a cut in interest rates diminishes. Existing home sales in the US unexpectedly rose in November after an equally unexpected advance in October, while a gauge of consumer confidence also gained ground. The TSX is up 10 pts. The Dow is off 17 pts.
Bonds sold off due to the positive economic data, sending the 5-year Canada yield up to 3.97% and the 10-year to 4.07%. The Loonie has gained 14 bps to US$.8624. Oil is up 33 cents to US.67/barrel. Gold is up to US5.30/oz.. 5 year mortgage rates remain stable.
