Financial Update July 26, 2006

US markets opened in the red again this morning after Boeing and Amazon lowered full-year profit forecasts, but has clawed its way back into positive territory. GM was an exception by beating analysts expectations by almost four-fold. The TSX is looking to extend its streak of consecutive triple-digit gains to three. Financial Services, Oil & Gas, and Materials are all solidly in the green this morning. Canadian Oil Sands Trust reported a 54% increase in Q2 profits, but lowered production guidance. The TSX is up 75 pts. The Dow is up 12 pts.

Bonds are flat this morning with the 5-year Canada yielding 4.25% and the 1-year 4.39%. The Loonie is up 20 bps to US$.8788. Oil is up 85 cents to US$74.60/barrel. Gold is up 80 cents to US$631.50/oz.