The TSX is climbing again this morning after finishing February with the strongest performance of the twenty largest indexes by market-cap in the world. Strong economic data is fuelling matters this morning, as the US ISM-manufacturing index expanded for the seventh consecutive month and personal spending climbed for the fourth month in a row. The employment component of the ISM index was encouraging with its fastest growth in five years.
Canada’s Gross Domestic Production grew at a 5% annualized pace in the fourth quarter, outpacing expectations by a wide margin. No change in interest rates is expected when the Bank of Canada convenes tomorrow, although the data will add to pressure. Copper jumped the most in almost a year on supply concerns after the massive earthquake in Chile. The TSX is up 70 pts. The Dow is up 69 pts.
Bond yields climbed on the economic data, pushing the 5-year yield up to 2.49% and the 10-year to 3.42%. The Loonie is also benefiting with a half cent gain to US$.9556. Gold is down $3.40 to US$1115.50/oz. Oil is flat at US$79.67/barrel.
