The TSX index has been on a bit of a rollercoaster this morning as a continuation of strong earnings reports is offset by profit taking after a year-long run-up in equities. Canadian insurer Manulife reported profits that exceeded average estimates by a wide margin, causing a decent jump in their share price. Bell Canada and auto parts manufacturer Magna Int’l also beat forecasts, with the latter announcing plans to eliminate its dual share structure which is helping send the stock 15% higher this morning.  Canadian building permits jumped 12% in March, beating every economists estimate. Initial jobless claims in the US declined for the third consecutive week, in line with forecasts. The TSX is down 42 pts. The Dow is down 100 pts.

The Canadian dollar is getting rather badly bruised as the risk trade is “off” at the moment, sending commodity prices lower and the greenback higher. The Loonie is down almost a full penny at US$.9624. Bond yields continue to sink, partly due to the flight to quality but also due to the fact that European debt concerns may filter down to any rate decisions by the Bank of Canada. The 5-year Canada bond yields 2.80% and the 10-year 3.48%. Oil is down $1.13 to US$78.84/barrel. Gold is up $11.30 to US$1186.30/oz.

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