The TSX gave back some recent gains with a 100 pt loss yesterday, but is on the march again this morning. Inco shares jumped 3% after conceding defeat in its bid for rival Falconbridge, opening the door for Swiss based Xstrata to acquire the company. US stocks are rising after the US Commerce Dep't reported that GDP grew at a slower than expected 2.5% in the second quarter. This is yet another indicator suggesting the Fed move to the sidelines. Their next meeting is scheduled for August 8th. The TSX is up 54 pts. The Dow is up 120 pts.
Bonds are rising on the GDP report, with the 5-year Canada yielding 4.21% and the 10-year 4.34%. The Loonie is up a third-cent to US$.8850 as the US dollar sags on a moderating interest rate outlook. Oil is down .24 to US.30/barrel. Gold is up .40 to US7.90/oz.
Brent Irving a mortgage broker with Global Mortgage Corp said that "A slight increase in the bond rates is something to keep and eye on when the consumer is trying to decide between a fixed or variable rate mortgage" which is something to keep in mind when deciding on which type of mortgage to take.
If you have any questions regarding this update please don't hesitate to contact Brent Irving mortgage consultant at (604) 764 - 6336.
