US markets dropped at the open, erasing yesterday’s gains after economic data surprised on the downside and rating agency Moody’s suggested it may cut Greece’s sovereign debt rating. The TSX is in positive territory on the back of the banks after CIBC and National Bank reported better than expected first-quarter income. Initial jobless claims in the US climbed by 22,000 last week, while orders for durable goods (excluding aircraft) unexpectedly slipped. TSX is up 12 pts.

The Dow is down 168 pts.

The Loonie fell more than a full penny this morning as debt concerns causes money to flow into US dollars. The C$ is down $1.11 to US$.9377. Bonds continue to climb on the economic data and after yesterday’s comments from Bernanke, pushing the 5-year Canada yield down to 2.50% and the 10-year to 3.41%. Oil is down $2.70 to US$77.30/barrel. Gold is up $2 to US$1099.20/oz.

North American markets are climbing this morning after Fed Chairman Ben Bernanke testified before congress that the recent hike in the discount rate is merely the first step in the removal of emergency liquidity measures and does not foreshadow an imminent rate hike. He reiterated his pledge to keep interest rates low for an extended period. New home sales in the US fell in January to the lowest level on record as the foreclosure market saps demand for new construction. The Canadian banks begin their Q1 earnings season with CIBC and National kicking things off tomorrow. They have been a driving force in the markets over the last two weeks, pushing the index higher in anticipation of decent results. The TSX is up 26 pts. The Dow is up 87 pts.

The Canadian dollar is clawing back some of yesterday’s steep slide, rising a third of a cent to US$.9493 this morning. Bonds are slightly stronger after Bernanke’s speech with the 5-year Canada yielding 2.52% and the 10-year 3.43%. Gold is down $3.90 to US$1099.30/oz. Oil is up 91 cents to US$79.77/barrel.

North American markets declined shortly after the open this morning as an index of US consumer confidence unexpectedly weakened, suggesting spending will likely constrained. An index of US home prices advanced for the seventh consecutive month in December, and showed the smallest year-over-year decline since May 2007. The market is awaiting Ben Bernanke’s appearance before congress tomorrow for an indication of when interest rates may begin to rise after last weeks hike in the discount rate. Home Depot followed in competitor Lowe’s footsteps with better than expected profits, and raised its dividend for the first time since 2006. Over 75% of the four hundred S&P500 listed companies that have reported last quarter’s profits have exceeded average forecasts. The TSX is down 120 pts. The Dow is down 71 pts.

The Canadian dollar is taking one on the chin as the sluggish consumer confidence report causes a rush into greenbacks. The Loonie is down 75 bps to US$.9516. Bond yields declined to 2.53% for the 5-year Canada and 3.45% for the ten. Gold is down $8 to US$1105.10/oz. Oil is down $1.37 to US$78.93/barrel.

After markets closed last night, the Federal Reserve acted on last week’s promise to raise the discount rate “before long”. The discount rate is the rate the Fed charges banks for emergency borrowing, and raising it from 0.50% to 0.75% is their first measure in reducing banks’ dependence on their lending facilities now that the financial crisis is behind us. Most banks don’t use the facility at this point, preferring to borrow through the Term Auction Facility (TAF). This rate has also been increased, and the facility should be coming to an end next month. Markets reacted negatively overnight, but are strengthening at the moment as this is a clear sign that the Fed believes credit markets and the economy are on firm enough ground to start removing excess liquidity. A couple of Canadian economic reports this morning would bolster their belief, with retail sales rising and continuing unemployment benefits declining. The TSX is up 29 pts. The Dow is up 22 pts.

The Canadian dollar fell overnight, but has rallied since to within a quarter-cent of last nights close to US$.9576. Bond yields climbed on the news, pushing the 5-year Canada yield up to 2.61% and the 10-year to 3.53%. Gold is off 60 cents to US$1118.10/oz. Oil is up 50 cents to US$79.55/barrel.

The TSX is climbing this morning for the seventh consecutive day as economic data continues to strengthen and profits recover. Leading indicators in the US climbed for the 10^th month in a row, suggesting the economy will continue to expand at least into the second half of this year. The Philadelphia area manufacturing index exceeded forecasts, with factory output surging to its highest level in over five years. The positive data, coupled with an all-time low Fed funds rate, has caused the yield curve to steepen to a record. Here in Canada, inflation climbed in January to a 1.9% annualized rate, right into the BoC’s target range. Energy prices led the advance with gasoline and natural gas climbing significantly from year ago levels. Gold producers Barrick and Kinross both released profits that exceeded forecasts, lifting shares across the sector. The TSX is up 68 pts. The Dow is up 15 pts.

The Canadian dollar is up just 13 bps to US$.9581, a tepid gain considering the inflation report and a strong crude oil price. Bond yields climbed on the economic and inflation data, with the 5-year Canada yield up to 2.56% and the 10-year to 3.50%. Gold is down $2.50 to US$1117.60/oz. Oil is up $1.13 to US$78.45/barrel.

North American markets continue to climb this morning, making this the sixth consecutive day of gains for the TSX. Positive economic and profit reports continue to fuel optimism that economic expansion is starting to gain traction. Housing starts in the US climbed more than average forecasts in January to a 591,000 annualized pace, which is still far below “normal” levels but headed in the right direction. Industrial production also increased more than forecast. Profits at Deere and Whole Foods topped forecasts for the last quarter, adding to the growing list of US and Canadian companies that are exceeded estimates. Intact Financial and Rogers Communications here in Canada also surprised on the upside, although subscriber growth at Rogers was less than expected and is weighing on shares. The TSX is up 45 pts. The Dow is up 15 pts.

The Canadian dollar is off a quarter-cent this morning to US$.9557 as recent strength in commodity prices starts to wane. Bond yields have come down a touch to 2.52% for the 5-year Canada and 3.47% for the ten. Gold is off $4.30 to US$1115.50/oz. Oil is down 37 cents to US$76.64/barrel.

North American markets are kicking off the holiday shortened week with a bang as decent economic data soothes some of the concerns of recent weeks. The Fed’s New York economic index rose higher than anticipated as manufacturing accelerated at the fastest pace in four months. Barclays Plc, the UK’s second-largest bank, rallied 10% overnight after reporting profits that doubled over the past year. A report from Bank of America – Merrill Lynch in London suggested that bookings of metals for shipment from warehouses registered with the LME have been increasing this year, signalling recovering demand from manufacturers. Canadian factory sales rose to the highest level in a year in December. Finance Minister Flaherty announced changed to the mortgage industry this morning stating that variable rate mortgages will have to meet the more stringent standards applied to a 5-year fixed rate mortgage, while people buying a home that they don’t intend to occupy will require a 20% down payment. The TSX is up 97 pts. The Dow is up 117 pts.

The Canadian dollar is up almost a full penny this morning to US$.9603 as commodity prices surge. Bond yields have climbed along with the general economic outlook, with the 5-year Canada bond yielding 2.54% and the 10-year 3.50%. Oil is up $2.87 to US$77.00/barrel. Gold has soared $29.70 to US$1119.70/oz. Gold priced in Euro’s reached a new all-time high this morning.

North American markets are closed this morning to celebrate Canada’s first gold medal on home soil (just kidding)…..actually it’s Family Day in Ontario and President’s Day south of the border, and the Lunar New Year celebrations have closed markets in China, Taiwan, Hong Kong, Singapore, South Korea and Malaysia, while Brazilian bourses are closed for Carnival. European markets climbed overnight, led by mining companies, after Goldman Sachs issued a report suggesting the Chinese economy would achieve its targeted growth despite recent monetary tightening. Commodities such as copper continue to build on last week’s gains, which will likely have an impact on share prices when markets open tomorrow.

Oil is up 13 cents to US$74.26/barrel. Gold has jumped $10 and is back over the US$1100 mark. The Canadian dollar is unchanged at US$.9520.

Go Canada Go!