A.M. market numbers: August 11, 2009

| North American markets | International markets | Bonds | Currency | Commodities |

The Toronto stock market could benefit from higher commodity prices at the open while investors took in data showing a drop in housing starts last month.

Canada Mortgage and Housing Corp. said the seasonally adjusted annual rate of housing starts decreased to 132,100 units in July from 137,800 units in June. CMHC said the dip was "mostly attributable to the volatile multiple starts segment."

"Although July registered a decline, housing starts are expected to improve throughout 2009," said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre.

The September crude contract on the New York Mercantile Exchange moved up 50 cents to US$71.10 a barrel. Crude has stuck around US$71 a barrel for a week as traders look for clues about the health of the global economy and oil demand.

The main TSX index fell 92 points Monday, all but wiping out last week’s gain of almost 1%, as investors took profits from the latest leg of the rally which started in early March.

However, the Toronto market is still ahead about 50% since then as optimism grows that an economic recovery will be in place by the end of the year.

The TSX could also benefit from higher metal prices as the December bullion contract moved up $2.40 to US$949.30 while the September copper contract edged up two cents to US$2.79

The Canadian dollar was down 0.62 of a cent to 91.23 cents US.

U.S. stock futures pointed to a slightly lower opening following modest losses Monday as investors await new data on productivity and wholesale inventories.

Investors also looked to a fresh view of American economic conditions at the end of the Federal Reserve’s two-day meeting on interest rates, which starts Tuesday.

The Fed is expected to keep its interest rate unchanged at near 0%. But investors will be looking to see if the Fed sounds a note of cautious optimism in its accompanying statement and whether it has plans to expand its asset-purchasing program now that funds are running dry.

In New York, the Dow Jones industrial futures fell 26 points to 9,294, the Nasdaq futures were off 4.2 points to 1,608.2 and the S&P 500 futures declined 3.4 to 1,004.1.

Asian markets advanced as China’s industrial output, trade and retail sales improved in July, data showed Tuesday, in positive signs for Beijing’s multibillion-dollar effort to restore stable growth in the world’s third-largest economy.

Hong Kong’s Hang Seng closed up 0.7% while Japan’s Nikkei 225 stock average rose 0.6% as the Bank of Japan said there were signs the downturn was bottoming out but warned about growing joblessness.

London’s FTSE 100 index dipped 0.45%, Frankfurt’s DAX was down 0.42% while the Paris CAC 40 was flat.

In earnings news, tissue maker and cardboard producer Cascades Inc. said Tuesday it turned a profit of $30 million during the second quarter despite a modest dip in sales. The showing reversed a year-earlier loss of $25 million.

Pharmaceutical company AEterna Zentaris Inc. said Tuesday lower expenses helped offset a dip in revenues during the second quarter as the company trimmed its net loss to $13.1 million from $20.6 million.

Crocotta Energy Inc. said low commodity prices and reduced production led to a sharp drop in oil and gas sales in the second quarter as the company swung to a loss of $3.2 million for the period. The Calgary-based company reported profits of $3.4 million a year ago.

(The Canadian Press)

North American markets

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Dow Jones	9,337.95	-32.12 or -0.34%	+6.40%
S&P 500	1,007.10	-3.38 or -0.33%	+11.50%
NASDAQ	1,992.24	-8.01 or -0.40%	+26.33%
TSX Composite	10,793.67	-91.66 or -0.84%	+20.09%

International markets

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	Open	Change	YTD
Nikkei	10,585.46	+61.20 or +0.58%	+19.48%
Hang Seng	21,074.21	+144.69 or +0.69%	+46.48%
SENSEX	15,074.59	+64.82 or +0.43%	+56.26%
FTSE 100	4,704.75	-17.45 or -0.37%	+6.10%
CAC 40	3,504.80	+0.26 or +0.01%	+8.91%
DAX	5,400.76	-17.36 or -0.32%	+12.28%

Bonds

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Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	101.73	101.20	3.54
Cdn. 30-year bond	116.17	115.45	4.03
U.S. 10-year bond	94.92	94.03	3.75
U.S. 30-year bond	96.00	94.22	4.49

Currency

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BoC Open	Today	Previous
Canadian $	0.9123	0.9185
US $	1.0961	1.0887

Euro Spot Rate	Today	Previous
Canadian $	0.6437	0.6496
Euro	1.5535	1.5395

Commodities

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Gold	AM	PM
London Gold Fix ($US)	$946.00	$945.00

Oil	Open	Change
WTI Crude Future (US)	$70.80	+$0.20 or +0.28%

(08/11/09)