A.M. market numbers: August 12, 2009

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

North American stock markets are likely headed for a flat open Wednesday as investors await a mid-afternoon announcement from the U.S. Federal Reserve on interest rates.

Toronto and New York markets have lost ground the last two days as investors search for fresh signs the U.S. economy is strengthening and pulling out of its recession.

It is widely expected that the central bank will hold its key interest rate at a historic low near 0%. And with rates unlikely to change, investors will be looking to see what the Fed says about the economy in its statement that accompanies the rate decision.

The Toronto stock market tumbled 164 points on Tuesday, led by sliding financials following comments from U.S. analyst Richard Bove of Rochdale Securities, who said that U.S. bank earnings are unlikely to improve in the second half and that many firms may post losses. He said investors should lock in profits after a surge in bank stocks over the last five months.

The loss still left the TSX main index up over 40% from the start of the rally which started in early March. But analysts have been warning that the market is vulnerable to a correction following such a steep runup.

The Dow Jones industrials shed 96 points on Tuesday. About an hour before North American markets open, the Dow futures were down nine points, the Nasdaq off by 0.75 of a point and the S&P 500 figures dipped 1.5 points.

The September crude contract on the New York Mercantile Exchange dipped two cents to US$69.43 a barrel as several organizations said global demand for crude would improve only gradually as economies struggle to emerge from recession.

The U.S. Energy Department’s Energy Information Administration said Tuesday that global crude demand will likely fall by 1.71 million barrels this year, more than its previous forecast of a drop of 1.56 million barrels.

And the Organization of Petroleum Exporting Countries said it expects consumption to slide by 1.65 million barrels a day this year, before rising next year.

The December bullion contract dropped $2 to US$945.60 an ounce while September copper was unchanged at US$2.74 a pound.

The Canadian dollar continued to lose ground, moving down 0.17 cent to 90.62 cents US after a rally in the U.S. currency sent the loonie down just over a cent on Tuesday.

Overseas, Asian markets tumbled with Chinese shares falling nearly 5% on renewed jitters over the economic outlook.

Figures released Tuesday in China showed improvement in trade, retail sales and industrial production, adding to spreading signs of a global recovery. But some said the gains were not as big as hoped for, and corporate profits remain relatively weak.

Asia’s biggest benchmark, Tokyo’s Nikkei 225 stock average, retreated from a 10-month high, losing 1.4% while Hong Kong’s Hang Seng Index fell 3% and Shanghai’s Composite Index tumbled 4.7%.

London’s FTSE 100 index was flat, the Frankfurt DAX added 0.2% and the Paris CAC 40 moved up 0.59%.

On the earnings front, uranium miner Cameco Corporation (TSX:CCO) reported second quarter net earnings of $247 million, up $97 million from the same period a year ago.

Penn West Energy Trust (TSX:PWT.UN) reported a net loss of $41 million, narrowing a loss of $323 million recorded during the same quarter of 2008 as oil prices began to recover from a trough reached in the first three months of the year.

Quarterly revenues dropped 40% to $791 million from $1.3 billion booked the year before.

ATS Automation Tooling Systems Inc. (TSX:ATA) said Wednesday its profits plunged 98 % in the first quarter of fiscal 2010 as the global recession took its toll on the company’s customers.

The manufacturing equipment maker, based in Cambridge, Ont., reported profits from continuing operations of $300,000 or nil per share for the quarter ended June 28. The results marked a steep drop from net income of $15 million or 17 cents per share recorded a year ago.

(The Canadian Press)

North American markets

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Dow Jones	9,241.45	-96.50 or -1.03%	+5.30%
S&P 500	994.35	-12.75 or -1.27%	+10.09%
NASDAQ	1,969.73	-22.51 or -1.13%	+24.90%
TSX Composite	10,629.47	-164.20 or -1.52%	+18.27%

International markets

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	Open	Change	YTD
Nikkei	10,435.00	-150.46 or -1.42%	+17.78%
Hang Seng	20,435.24	-638.97 or -3.03%	+42.03%
SENSEX	15,020.16	-54.43 or -0.36%	+55.69%
FTSE 100	4,674.54	+3.20 or +0.07%	+5.42%
CAC 40	3,459.71	+3.53 or +0.10%	+7.51%
DAX	5,300.28	+14.47 or +0.27%	+10.19%

Bonds

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Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	102.12	101.73	3.49
Cdn. 30-year bond	117.02	116.17	3.98
U.S. 10-year bond	95.47	94.78	3.68
U.S. 30-year bond	96.87	94.59	4.44

Currency

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BoC Open	Today	Previous
Canadian $	0.9062	0.9078
US $	1.1035	1.1015

Euro Spot Rate	Today	Previous
Canadian $	0.6397	0.6415
Euro	1.5632	1.5588

Commodities

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Gold	AM	PM
London Gold Fix ($US)	$ 943.50	$946.00

Oil	Open	Change
WTI Crude Future (US)	$69.45	+$0.00 or +0.00%

(08/12/09)