North American markets declined at the open, mainly on the back of the energy sector as oil slid further and natural gas hit a seven-year low. Inventories of natural gas in the US continue to climb as one of the coolest summers in recent history limit the use of electricity for air conditioners. TD, Royal and National Bank all reported profits this morning that handily beat analysts’ estimates, with Scotia scheduled to finish off the season tomorrow. The US economy shrank at a less-than-expected rate of -1% in the second quarter, with most analysts now expecting a resumption of growth in the current quarter. The TSX is down 48 pts. The Dow is off 19 pts.

The Loonie stopped its recent decent, climbing by 18 bps to US$.9127 just in the last hour. Bond yields are a touch lower at 2.64% for the 5-year Canada and 3.38% for the ten. Oil is off a dollar to US$70.45/barrel. Gold is up a dollar to US$946.80/oz.

North American markets are cautiously higher this morning as decent economic data continues to buoy sentiment, but speculation that China may impose curbs on production of things like steel and cement to reign in overcapacity is tempering the enthusiasm. New home sales in the US jumped by 9.6%, the most in almost five years, while the number of homes on the market declined appreciably. Durable goods orders also climbed more than forecast last month, which is likely to gain steam as the much ballyhooed “cash-for-clunkers” program didn’t get underway until the latter days of July. CIBC reported profits that missed analysts forecasts on rising loan-losses. Shares of CIBC sold off sharply this morning, but the rest of the sector continues to build on yesterdays rally. The TSX is up 19 pts. The Dow is up 8 pts.

The Canadian dollar is under pressure after a senior advisor to BoC Governor Mark Carney reiterated that a rising Loonie posts a threat to Canada’s economic growth, and that they may need to undertake quantitative easing (aka. printing money) to stem the advance. The central bank has not intervened in currency markets since 1999.. The Loonie declined over a penny to US$.9101. Bond yields slid back as the BoC measures would artificially depress longer term interest rates, with the 5-year Canada yield down to 2.65% and the 10-year to 3.40%. Gold is off $1.70 to US$944.30/oz. Oil is down $1.08 to US$70.97/barrel.

Financials are leading the TSX higher this morning after BMO kicked off earnings season with better than expected profits and record revenues. Loan loss provisions were not as high as analysts expected, helping boost the bottom line. The financial sector index of the TSX is up over 3% this morning, with almost every company in the sector rallying on the news. Positive economic data is also lending a hand this morning after US consumer confidence jumped more than forecast, while home prices in June posted the largest month-over-month increase in four years. Ben Bernanke has been awarded a second term as Chairman of the Federal Reserve after being nominated by President Obama. The TSX is up 151 pts and is quickly approaching its 2009 high set earlier this month. The Dow is up 81 pts.

The Loonie is off 12 bps to US$.9273 this morning. The yield curve flattened noticeably with the 5-year Canada bond yield climbing to 2.68% and the ten-year falling to 3.42%. Oil is down 32 cents to US$74.05/barrel. Gold is up $5.70 to US$949.40/oz.

North American markets are starting the week on a positive note after comments from Bernanke and Trichet at the annual central bankers’ symposium reinforced confidence that the global economy is improving. Canadian retail sales surprised on the high side with a 1% advance. Canadian banks begin reporting Q3 earnings with BMO kicking things off tomorrow and the rest following suit over the course of the week. The TSX is up 46 pts. The Dow is up 51 pts.

The Canadian dollar took flight after the retail sales report despite the fact that the US dollar is stronger against most other world currencies.. The Loonie is up 70 bps to US$.9314. Bond yields rose after the report, pushing the 5-year Canada up to 2.60% and the 10-year to 3.45%. Gold is off $3 to US$951.70/oz. Oil is up 70 cents to US$74.58/barrel.

North American markets are surging higher this morning after existing home sales in the US blew away forecasts with a 7.2% jump in July, the biggest increase since records began a decade ago and bringing the annualized rate up to the highest level in two years. Throw in overnight releases on the German services industry index and France’s manufacturing activity, both of which unexpectedly entered expansion mode, and we’ve got a full blown rally that has pushed the S&P500 to a new 2009 high. Oil climbed to its highest level this year, while gold and base metals are also rising on the positive data. The TSX is up 127 pts. The Dow is up 140 pts.

The Canadian dollar is on the rise as we get back to the recent trend of the greenback declining on strong economic news. The Loonie is up a half cent to US$.9252. Bond yields rose on the data, with the 5-year Canada yield up to 2.57% and the 10-year to 3.44%. Oil is up $1.02 to US$73.93/barrel after breaking $74 earlier in the day. Gold is up $14.60 to US$956.20/oz.

North American markets managed to break into positive territory as yesterday’s trading day wore on, and have continued the positive trend this morning. The Shanghai Composite Index surged 4.3% overnight, its largest one-day advance since March, after profits at one of the largest banks in China surged in the latest quarter. The worlds largest bank, Industrial and Commercial Bank of China, reported profit that exceeded estimates after the close of Asian markets. AIG is leading US markets higher this morning after saying it expected to repay government TARP funds. The gauge of US leading economic indicators rose in July for the fourth consecutive month, adding to convictions that the recession is ending. Meanwhile, Canadian wholesale sales rose in June for the first time in nine months. The TSX is up 46 pts. The Dow is up 36 pts.

The Canadian dollar also finished yesterday with a solid gain, but is up just five bps to US$.9132 this morning. Bond yields climbed on the economic data, with the 5-year Canada yielding 2.54% and the 10-year 3.41%. Gold is down $3.30 to US$941.50/oz. Oil is up 14 cents to US$72.56/barrel.

European and Asian shares fell overnight, with the Shanghai Composite index touching bear market territory after a two month slide of 20%. North American indexes followed suit at the open, but have been rallying ever since and are now barely in negative territory. Currency markets have been dominating equity market direction, and the sharp rise in the US$ over the last week and overnight last night has met some resistance this morning. The index of leading Canadian economic indicators rose in July for the first time in almost a year. Meanwhile, inflation figures were in negative territory as fuel prices have been slashed from year ago levels. The TSX is down 19 pts. The Dow is down 17 pts.

The Canadian dollar was a good half-cent lower this morning, but turned sharply as the greenback hit the wall and is now flat at US$.9076. Bond yields are slightly lower due to the benign inflation report, with the 5-year Canada yielding 2.50% and the 10-year 3.39%. Oil was close to $66 earlier today after falling overnight, but is now up $1.67 to US$70.81/barrel. Gold is up $5 to US$944.20/oz.

There’s not much data on the wires to move markets in either direction this morning. US consumer prices were flat last month, affirming the Fed’s stance to leave interest rates unchanged for the foreseeable future and lighting a fire under bond prices. Sales from Canada’s manufacturers unexpectedly jumped in June by 1.9% when analysts had expected a decline. New orders climbed a whopping 18%, the most since records began almost two decades ago. The TSX is down 8 pts. The Dow is down 46 pts.

 The Canadian dollar is being lifted by the strong factory sales report, up almost a half-cent to US$.9230. Bonds rose due to the US CPI data, pushing the 5-year yield down to 2.58% and the 10-year to 3.47%. Oil is off a quarter to US$70.24/barrel. Gold is flat at US$956.50/oz.

The TSX opened stronger this morning as positive economic news from Europe seems to have trumped sluggish American data. The economies of Germany and France unexpectedly expanded last quarter, adding to the growing list of data suggesting the global economy is pulling out of this recession more quickly than expected. Meanwhile, US retail sales declined last month by a slim 0.1% while initial jobless claims rose slightly. The Federal Reserve left interest rates unchanged yesterday, but added clarity to its plans to remove stimulus from the system over the balance of this year and next. It would appear that higher interest rates would be among the last tools used, meaning we likely won’t see a hike for quite some time. Commodities are benefiting from the European data as well as a weaker US dollar. The TSX is up 179 pts. The Dow is up 10 pts.

The Canadian dollar is a touch higher this morning at US$.9211 as commodity prices rise, but is being tempered by indefinite low interest rates. Government of Canada bonds yield 2.63% for the 5-year maturity and 3.53% for the ten. Gold is up $5.70 to US$958.20/oz. Oil is up a dollar to US$71.25/barrel.