American markets are strong this morning after manufacturing activity climbed at the fastest pace in six years, and due to a weekend agreement between the European Union, the IMF and the beleaguered Greek government. Terms of the deal will extend a three-year lifeline to Greece as they get their economic house in order, including such measures as tax hikes, wage freezes and pension cuts. The ISM manufacturing index climbed to 60.4 in March, with the ISM services sector index due on Wednesday. Employment reports from both sides of the border are due out Friday. The mining sector in general is weak this morning after Australia announced a 40% tax on profits from resource firms, while China raised banks reserve requirements for the third time this year. The TSX is down 23 pts. The Dow is up 88 pts.
The Canadian dollar is climbing this morning as oil prices rise, up a third of a penny to US$.9878. Bond yields are steady with the 5-year Canada yielding 3.01% and the 10-year 3.67%. Gold is up $4.80 to US$1185.50/oz. Oil is up 42 cents to US$86.57/barrel.
