Financial Update - 21 July, 2006
US markets are being dragged down by technology shares after Dell said Q2 profits will miss estimates and Advanced Micro Devices failed to match forecasts. Inflation in Canada slowed sharply in June as clothing and cars dragged the core and headline rates well below forecasts. This is helping the interest sensitive sectors and buoying the TSX. CN Rail announced a 75% jump in Q2 earnings. The TSX is off 8 pts. The Dow is down 44 pts.
Bonds are getting a big boost from the drop in CPI, sending the 5-year Canada yield down to 4.23% and the 10-year to 4.37%. The Loonie is trading lower on the news as this should firmly keep the Bank of Canada on the sidelines (one more CPI report before their next policy meeting). The dollar is at US$.8779. Gold is down to US5/oz. Oil is up 38 cents to US.65/barrel. |
