The TSX is building on yesterday’s road based gains, although the advance is almost exclusively due to the gold sector after the CEO of Kinross suggested production would increase by over 50% over the next half-decade. US stocks were strong at the open after US home prices had a smaller than forecast year-over-year decline after a 1.2% uptick in July, but markets faltered after an index of Consumer Confidence unexpectedly declined. Consumer confidence in Canada, however, has risen to its highest level since last April as the employment picture begins to brighten. Emerging markets rallied overnight after Taiwan said it may allow China to invest in their technology industries. The TSX is up 16 pts. The Dow is down 33 pts.

The Canadian dollar is bucking the trend this morning, rising against the greenback even as the US dollar index strengthens. The Loonie is up 16 bps to US$.9211. Bond yields have declined on the US economic data, sending the 5-year Canada yield down to 2.58% and the 10-year to 3.33%. Gold is down $1.40 to US$992.70/oz. Oil is off 42 cents to US$66.41/barrel.

North American markets opened quite strong this morning amid a flurry of M&A activity and renewed weakness in the US dollar. High speed printer manufacturer Xerox said it is acquiring services company Affiliated Computer for US$6.4 billion, while consolidation in the pharmaceutical industry continues with Abbott Labs winning the takeover battle for Solvay’s drug unit. We’re seeing near universal strength in Canadian large caps as banks and financials gain ground, while an uptick in crude oil and gold bullion prices are lifting their respective sectors. Month end brings about some closely watched economic data, with the US manufacturing index due Thursday and likely in expansion mode for the second straight month. The TSX is up 151 pts. The Dow is up 136 pts.

The Loonie is looking a little healthier this morning after sinking last week, up 39 bps to US$.9192 at last check. Bond yields are up a touch to 2.60% for the 5-year Canada and 3.36% for the ten. Gold is up $5 to US$996..60/oz. Oil is up $1.18 to US$67.20/barrel.

The TSX index is in the red this morning almost solely due to index heavyweight Research in Motion’s announcement that Q3 sales would be lower than previously forecast, resulting in a 15% drop in their share price. The maker of the Blackberry was also cut from Goldman Sachs’ buy list. The energy sector is mildly stronger on a slight gain in crude prices, while another drop in gold prices is weighing on the materials sector. US durable goods orders declined 2.4% in August, a steeper decline than average expectations. The TSX is down 61 pts. The Dow is off 12 pts.

The Canadian dollar is flat this morning at US$.9184. Bond yields have retreated on the sluggish economic data, sending the 5-year yield down to 2.63% and the 10-year to 3.39%. Gold has fallen another $6.20 to US$992.70/oz. Oil is up 31 cents to US$66.20/barrel.

The S&P/TSX index, the Dow Jones Industrial Average, and the S&P500 all closed at new highs for the year yesterday as it becomes increasingly apparent that the world economy is emerging from recession. New Zealand was the latest country to report growing GDP figures overnight, unexpectedly gaining ground after six consecutive quarters of contraction. Indexes were treading water to start the trading day, but declined after data showed an unexpected build in US fuel inventories.. The FOMC have a press release scheduled later this morning that will likely reiterate its policy of keeping interest rates low for the foreseeable future, but may provide more clues as to how they plan to wind down the enormous stimulus currently at work. The Bank of Canada announced yesterday that next month they will be ending two of the three emergency loan facilities currently available, as business conditions have improved substantially over the last few months. The TSX is down 58 pts. The Dow is off 19 pts.

The Canadian dollar declined along with oil prices, off 39 bps to US$.9316 this morning. Bond yields rose slightly to 2.66% for the 5-year Canada and 3.43% for the ten. Gold is down $5.50 to US$1010/oz. Oil is down $2.81 to US$68.95/barrel.

North American markets are showing broad-based strength this morning, erasing a mild two-day slide, as an improving economic backdrop sinks the US dollar and lifts commodity prices. The Asian Development Bank raised its economic growth outlook for the region as the economies of China, India and Indonesia are expanding at a faster pace than previously forecast. Meanwhile, China’s sovereign wealth fund (CIC) continues to move cash into commodity based equities with a 15% stake in Hong Kong-based commodity supplier Noble Group. CIC had almost $300 billion in cash at the end of last year. The TSX is up 140 pts. The Dow is up 37 pts.

The Canadian dollar is also erasing yesterday’s loss, climbing 80 bps to US$.9361 this morning. Bond yields have climbed across the curve, with the 5-year Canada yielding 2.64% and the 10-year 3.41%. Gold is up $10.70 to US$1015.60/oz. Oil is up $1.68 to US$71.39/barrel.

North American markets are relatively quiet this morning despite being options-expiry day that can often cause increased volatility. Financials are broadly higher in Canada, while the energy and gold sectors are mostly lower. Analyst upgrades on Chevron and Proctor & Gamble are pushing US markets higher. Canadian wholesale trade jumped an impressive 2.8% in July, adding to the growing list of data that suggests our economic recovery is more pronounced than most expectations. The Canadian government is expected to announce an elimination of tariffs on machinery and heavy equipment today, saving our manufacturers hundreds of millions in taxes. The TSX is down 8 pts. The Dow is up 40 pts.

The Canadian dollar briefly touched US$.9440 yesterday before settling back later in the day, and is down a quarter-cent to US$.9346 this morning.. Government of Canada bonds yields 2.62% for the five year maturity and 3.39% for the ten. Oil is down 47 cents to US$72/barrel. Gold is off 50 cents to US$1013/oz.

I hate to sound like a broken record, but the TSX is forging ahead again this morning as brightening economic prospects weigh on the greenback and lift commodity prices. Ben Bernanke said yesterday that he thinks the recession is “very likely over”, while Warren Buffett commented that his company has been buying stocks because he is “getting a lot for his money”. He also suggested he doesn’t expect to see a double-dip recession and that the worst conditions in residential real estate are behind us. July figures for Canadian manufacturing activity jumped the most in 12 years, more than double average expectations, as auto production ramped up. Data from the Canadian Real Estate Association showed an 18.5% year-over-year gain in home re-sales, with average prices rising 11.3%. Meanwhile, active listings have declined to a national average of 5 months supply. The TSX is up 55 pts. The Dow is up 47 pts.

The Canadian dollar climbed to its highest level this year as the greenback weakens, commodity prices rise, and the Conservative government appears to have staved off a potential election for now. The Loonie is up a third of a cent to US$.9365. The shorter end of the yield curve rose on the Canadian manufacturing data, pushing the 5-year Canada yield to 2.64%. The 10-year is flat at 3.38%. Oil is up 47 cents to US$71.40/barrel. Gold climbed to an 18 month high of $1016.80/oz.

The TSX continues to grind higher this morning without direction from any one particular sector. US retail sales were considerably better than estimates in August, climbing by the most in almost four years. Strength was in large part due to the “cash-for-clunkers” program which ended at the end of last month, but ex-autos ware also quite strong.  The notoriously volatile month of September that had markets jittery as we neared the end of August is turning into quite the month for equities, with the TSX up close to 5% in the last two weeks and (at this point) headed for one of the best Septembers in decades. The TSX is up 73 pts. The Dow is flat.

Bond yields climbed on the solid retail sales report, putting the 5-year Canada at 2.61% and the 10-year at 3.38%. The Loonie is also climbing on the news, up 36 bps to US$.9265. Gold is up $2.70 to US$1003.80/oz. Oil unchanged at US$68.85/barrel.