Archive for May, 2007

Market News May 30, 2007

May 31, 2007

Market closes for Wednesday, May 30, 2007:

Dow Jones 13,633.08 +111.74 or +0.83% YTD: +9.39%
S&P 500 1,530.23 +12.12 or +0.80% YTD: +7.89%
NASDAQ 2,592.59 +20.53 or +0.80% YTD: +7.34%
TSX COMP 14,081.71 +118.99 or +0.85% YTD: +9.09%
TSX VENT 3181.82 -25.73
Canadian dollar $Cdn. $U.S.
BoC Closing rate 1.0739 0.9312
Previous BoC closing rate 1.0735 0.9315

Cdn. Dollar/Euro Spot Rate 1.4425 0.6933

Gold AM PM
London Gold Fix (US) $657.10 $652.65

Spot Crude Oil Future(US) $63.49 +$0.34 or +0.54

Higher energy and mining stocks helped the Toronto stock market bound sharply higher Wednesday after investors shrugged off the second big tumble on the Shanghai stock market this year.

New York markets also jumped even as the latest minutes from the U.S. Federal Reserve provided little hope for an interest rate cut.

Toronto’s S&P/TSX composite index ran ahead 118.99 points to 14,081.71 after the Shanghai key index retreated 6.5% after the Chinese government tripled its tax on stock trades, from 0.1% to 0.3%, in a move seen as an attempt to deflate what is widely seen as a dangerous bubble.


Market News May 29, 2007

May 30, 2007

Market closes for Tuesday, May 29, 2007:

Dow Jones 13,521.34 +14.06 or +0.10% YTD: +8.49%
S&P 500 1,518.11 +2.38 or +0.16% YTD: +7.04%
NASDAQ 2,572.06 +14.87 or +0.58% YTD: +6.49%
TSX COMP 13,962.72 -111.02 or -0.79% YTD: +8.17%
TSX VENT 3207.55 -18.58
Canadian dollar $Cdn. $U.S.
BoC Closing rate 1.0735 0.9315
Previous BoC closing rate 1.0803 0.9257

Cdn. Dollar/Euro Spot Rate 1.4438 0.6926
Gold AM PM
London Gold Fix (US) $657.60 $660.15

Spot Crude Oil Future(US) $63.15 -$2.05 or -3.14

The Toronto stock market stalled after two days of gains Tuesday, losing just over 100 points as energy and mining stocks retreated and investors took in a strong hint from the Bank of Canada that an interest rate hike may be needed “in the near term” to keep inflation under control.

That word sent the Canadian dollar surging to close past the 93-cent US level for the first time in almost 30 years.
The loonie closed up 0.58 of a cent to 93.15 cents US after going as high as 93.36 cents for the first time since September 1977. The Bank of Canada also announced it’s leaving its key interest rate unchanged at 4.25%.

The currency has risen about 8.7% this year, partly in the belief that the central bank will raise interest rates later this year. It has also been supported by a string of positive economic reports, higher commodity prices and corporate acquisition activity that has boosted demand for Canadian dollars.

Market News May 28, 2007

May 29, 2007

Market closes for Monday, May 28, 2007:

Dow Jones 13,507.28 Closed YTD: +8.83%
S&P 500 1,515.73 Closed YTD: +6.87%
NASDAQ 2,557.19 Closed YTD: +5.88%
TSX COMP 14,073.74 +49.67 or +0.35% YTD: +9.03%
TSX VENT 3226.13 -16.07

Canadian dollar $Cdn. $U.S.
BoC Closing rate 1.0803 0.9257
Previous BoC closing rate 1.0794 0.9264

Cdn. Dollar/Euro Spot Rate 1.4535 0.6880

Gold AM PM
London Gold Fix (US) $655.00 $655.30

Spot Crude Oil Future(US) $64.52 -$0.68 or -1.04

The Toronto stock market closed higher Monday with most strength coming from positive corporate news and reports that more bids may be materializing for aluminum giant Alcan Inc.

The S&P/TSX composite index closed up 49.67 points to 14,073.74 as the closure of U.S. markets for Memorial Day resulted in much lower than usual volume with all sectors positive except energy amid falling oil prices.

The showing on the TSX leaves the market 69 points below its record-setting close last Wednesday. Even so, the Toronto market is up about 9% for the year to date.

Shares in Alcan were up $2.60 to $94.25 after the Sydney Morning Herald said Anglo-Australian mining company Rio Tinto PLC may be considering a $27-billion-plus bid for the Montreal-based aluminum company.

Market News May 25, 2007

May 28, 2007

Market closes for Friday, May 25, 2007:

Dow Jones 13,507.28 +66.15 or +0.49% YTD: +8.83%
S&P 500 1,515.73 +8.22 or +0.55% YTD: +6.87%
NASDAQ 2,557.19 +19.27 or +0.76% YTD: +5.88%
TSX COMP 14,024.07 +77.80 or +0.56% YTD: +8.64%
TSX VENT 3242.20 +36.21
Canadian dollar $Cdn. $U.S.
BoC Closing rate 1.0794 0.9264
Previous BoC closing rate 1.0847 0.9219

Cdn. Dollar/Euro Spot Rate 1.4512 0.6891

Gold AM PM
London Gold Fix (US) $655.00 $655.30

Spot Crude Oil Future(US) $65.20 +$1.02 or +1.59

The Toronto stock market put in a solid performance Friday even as market heavyweight Royal Bank limited gains after its quarterly earnings results missed expectations while the Canadian dollar rolled ahead to another 30-year high.

New York indexes also advanced ahead of a three-day Memorial Day holiday weekend amid news of a big slowdown in home sales.

Toronto’s S&P/TSX composite index closed up 77.8 points to 14,024.07 but finished the week slightly lower after profit taking took a bite of almost 200 points from the TSX Thursday

Royal Bank increased its quarterly profit by 14% to $1.28 billion or 98 cents a share as revenue rose 11% to $5.67 billion. But analysts were expecting earnings of $1 per share.

London Irvine Report May 25, 2007

May 28, 2007


Change is the law of life. And those who look only to the past or present are certain to miss the future.

President John F. Kennedy.

With France closed on Monday for some sort of Gallic holiday, Victory Over [fill in the blank] Day, (Luxembourg?) Great Britain and America are taking the day off too. Just as well perhaps, Asian markets are starting to look decidedly vulnerable and with civilisation closed for a holiday, a Black Monday in China, if it happens, will have limited spillover effect. Austrians, Belgians, Danes, Germans, Greeks, and the Dutch, are also celebrating something or other too. Much of Europe will be doing what
Europe does best.

Below, a skittish Asia starts splitting into two camps..

Japan, Hong Kong shares sharply lower, China stocks gain
By V. Phani Kumar
Last Update: 12:25 AM ET May 25, 2007
MUMBAI (MarketWatch) — Most Asian benchmarks were sharply lower Friday, spooked by strong economic data in the U.S. that raised fears of an interest rate hike and weighed on U.S. equities. In Japan, exporters Toyota Motor Corp. and Canon Inc. led decliners. In Tokyo, the Nikkei 225 dropped as much as 1.6% to 17,416.11 while the broader Topix index was down 30.69 points at 1,707.42. Toyota) lost 1.9% and Canon slid 2.2%. The dollar was quoted at 121.32 yen as compared with 121.40 yen late Thursday in New York. Earlier Friday, data released by the government showed that Japan’s core consumer prices were 0.1% lower in April compared to the year-ago period, slipping for the third straight month. Elsewhere in the region,

Australia’s S&P/ASX 200 was down 30.9 points at 6,248.2, Hong Kong’s Hang Seng was off 1.4% at 20,511.58, New Zealand’s NZSE 50 was 0.6% lower at 4,306.21, Korea’s Kospi was off 0.5% at 1,637.96, Singapore’s Straits Times lost 1.1% at 3,492.42 and the Taiwan Weighted index was 0.8% weaker at 8,150.24. China’s Shanghai Composite, however, defied the trend and was up 0.4% at 4,169.52, as the B shares recovered from Thursday’s sharp fall, which was sparked by former U.S. Federal Reserve Chairman Alan Greenspan’s comment that he feared a “dramatic contraction” in the Chinese stock market

Market News May 24, 2007

May 28, 2007

Market closes for Thursday, May 24, 2007:

Dow Jones 13,441.13 -84.52 or -0.62% YTD: +7.85%
S&P 500 1,507.51 -14.77 or -0.97% YTD: +6.29%
NASDAQ 2,537.92 -39.13 or -1.52% YTD: +5.08%
TSX COMP 13,946.27 -196.24 or -1.39% YTD: +8.04%
TSX VENT 3205.99 -72.93
Canadian dollar $Cdn. $U.S.
BoC Closing rate 1.0847 0.9219
Previous BoC closing rate 1.0821 0.9241

Cdn. Dollar/Euro Spot Rate 1.4564 0.6866
Gold AM PM
London Gold Fix (US) $661.50 $659.00

Spot Crude Oil Future(US) $64.18 -$1.59 or -2.42

North American stock markets fell sharply Thursday as economic data triggered a wave of profit taking from stocks that have shot up recently, taking indexes to record highs

Toronto’s S&P/TSX composite index bore the brunt of losses, retreating 196.24 points to 13,946.27 just a day after closing at a record high, with added pressure coming from a sharp drop in oil and gold prices.

“You had to expect it was going to happen, things get a little too juicy here and a little bit more buoyant than they should be,” said Fred Ketchen, manager of equity trading at Scotia Capital.

“Mind you, we’re still up (eight) per cent for the year _ so is the Dow as far as that goes, and I don’t think we have any right to complain.”

London Irvine Report May 24, 2007

May 24, 2007

“Clearly Unsustainable”.

“As events evolved, we recognized that, despite our suspicions, it was very difficult to definitively identify a bubble until after the fact — that is, when its bursting confirmed its existence. Moreover, it was far from obvious that bubbles, even if identified early, could be pre-empted short of the central bank inducing a substantial contraction in economic activity — the very outcome we would be seeking to avoid.”

Allan Greenspan. Ex Guru.

The world’s leading ex-Guru in economics was warning the elite of Madrid yesterday, via video link, of the dangers coming from China’s stock market bubble. The great economist who as Fed Chairman pontificated that you can only see bubbles after they’ve burst, in private practise now has a new crystal ball and now sees bubbles well in advance. Will the Damascene conversion now lead to his re-advocating gold?

Speaking of the 90% rise this year in China’s leading stock index , the CSI 300, ex-Guru Greenspan is widely reported in the press this morning as saying “It is clearly unsustainable. There is going to be a dramatic contraction at some point.” The envelope with the quarter of a million dollare cheque please.

Below, Reuters reports on his forecast of a “dramatic drop” ahead.

Market News May 23, 2007

May 24, 2007

Market closes for Wednesday, May 23, 2007:

Dow Jones 13,525.65 -14.30 or -0.11% YTD: +8.53%
S&P 500 1,522.28 -1.84 or -0.12% YTD: +7.33%
NASDAQ 2,577.05 -10.97 or -0.42% YTD:+6.70%
TSX COMP 14,142.51 +30.32 or +0.21% YTD: +9.56%
TSX VENT 3278.92 +4.24
Canadian dollar $Cdn. $U.S.
BoC Closing rate 1.0821 0.9241
Previous BoC closing rate 1.0860 0.9208

Cdn. Dollar/Euro Spot Rate 1.4569 0.6864
Gold AM PM
London Gold Fix (US) $659.20 $662.05

Spot Crude Oil Future(US) $65.77 +$0.26 or +0.40

The Toronto stock market put in its fifth consecutive record close Wednesday on takeover activity and a better than expected quarterly earnings report from Bank of Montreal, while the Canadian dollar closed at a fresh 30-year high.

But the TSX finished well off the best levels of the day and New York indexes retreated after former Federal Reserve Chairman Alan Greenspan raised the spectre of a sharp retracement in the Chinese stock market, saying he feared a “dramatic correction.”

The Shanghai Composite Index, which tracks shares listed on the larger of China’s two stock exchanges, has gained 56% year-to-date

Market News May 22, 2007

May 23, 2007

Market closes for Tuesday, May 22, 2007:
Dow Jones 13,539.95 -2.93 or -0.02% YTD: +8.64%
S&P 500 1,524.12 -0.98 or -0.06% YTD: +7.46%
NASDAQ 2,588.02 +9.23 or +0.36% YTD:+7.15%
TSX COMP 14,112.19 +6.85 or +0.05% YTD: +9.33%
TSX VENT 3274.68 -4.92
Canadian dollar $Cdn. $U.S.
BoC Closing rate 1.0860 0.9208
Previous BoC closing rate 1.0895 0.9178

Cdn. Dollar/Euro Spot Rate 1.4608 0.6846
Gold AM PM
London Gold Fix (US) $663.50 $662.00

Spot Crude Oil Future(US) $64.97 -$1.30 or -1.96

The Toronto stock market drifted to a slightly higher close Tuesday, establishing a fresh record high while the Canadian dollar closed above the 92-cent US level for the first time in three decades.

New York markets closed mixed in choppy trading as investors were pleased with the latest round of takeover activity but hesitant to take the values sharply higher ahead of new economic data.

The Canadian dollar moved up 0.29 of a cent to 92.08 cents US, its highest close since October, 1977, after jumping by more than three-quarters of a cent Friday.

Analysts attribute the currency’s sharp rise to positive economic reports, higher-than-expected inflation and strong commodity prices.

Market News May 18, 2007

May 22, 2007

Market closes for Friday, May 18, 2007:

Dow Jones 13,556.53 +79.81 pts or +0.59% YTD: +8.77%
S&P 500 1,522.75 +10.00 pts or +0.66% YTD: +7.36%
NASDAQ 2,558.45 +19.07 pts or +0.75% YTD:+5.93%
TSX COMP 14,105.34 +4.63 pts or 0.03% YTD: +9.27%
TSX VENT 3279.60 +43.05
Canadian dollar $Cdn. $U.S.
BoC Closing rate 1.0895 0.9178
Previous BoC closing rate 1.0987 0.9102

Cdn. Dollar/Euro Spot Rate 1.4721 0.6793 Euro

Gold AM PM
London Gold Fix (US) $660.75 $657.00

Spot Crude Oil Future(US) $64.94 +0.08 or +0.12

The Canadian dollar had its highest close since the height of the disco era on Friday, while the Toronto stock market drifted to a slightly higher record close after establishing a firm foothold above the 14,000 mark this past week.

U.S. stocks were much more active, closing sharply higher after a reading on consumer sentiment proved stronger than expected and investors got another dose of merger and acquisition activity.

Toronto’s S&P/TSX composite index added 4.63 points to 14,105.34,. Energy, mining and telecom stocks gained while financials dragged ahead of quarterly earnings reports from the big banks coming down over the next couple of weeks.

The Canadian dollar jumped 0.77 of a cent to its 91.79 cents US, its highest close since October, 1977 – down slightly from the session high of 91 cents US – after Statistics Canada said retail sales surged 1.9% in March to $34 billion, much more than the 0.7% rise economists had expected.