A.M. market numbers: August 21, 2009

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

The Toronto stock market appeared headed for a positive open Friday amid good economic news from Europe and higher oil prices.

The preliminary Markit composite purchasing managers’ index for the euro zone rose to a 15-month high of 50 in August from 47 in July, easily beating expectations for a reading of 48.3.

The increase suggests that economic output in the euro zone has at least stabilized -50 marks the inflection point between expansion and contraction.

The September crude contract on the New York Mercantile Exchange ran up $1.04 to US$73.58 a barrel. Oil prices have risen sharply since data was released Wednesday showing a large drawdown of U.S. crude inventories last week, raising hopes for demand.

The Toronto market could also get support from other commodity prices that moved higher. The December bullion contract on the Nymex gained $4.70 to US$946.40 an ounce while September copper climbed seven cents to US$2.81 a pound.

The Canadian dollar rose 0.22 of a cent to 92.19 cents US.

U.S. futures also climbed as the Dow Jones industrial futures advanced 32 points to 9,352, the Nasdaq up 6.2 points to 1,620.2 and the S&P 500 futures gained 4.6 points to 1,009.3 as investors await a speech from Federal Reserve Chairman Ben Bernanke.

During an annual Fed conference in Jackson Hole, Wyo., Bernanke is expected to talk about the past year’s financial crisis and could provide clues about how the Fed will eventually withdraw trillions of dollars in aid used to support the economy.

Withdrawing that support too soon could hinder any recovery. But waiting too long could lead to rapid inflation.

A report on existing home sales could also provide direction for investors. The National Association of Realtors is expected to report existing home sales rose for the fourth consecutive month in July.

July’s sales are forecast to rise 2.2% to a seasonally adjusted annual rate of five million.

The Toronto market closed up a slight 13.68 points Thursday and is heading for a second week of losses amid concern about how much support American consumers can lend to an economic recovery.

Consumer spending accounts for more than two-thirds of economic activity.

Retailer Gap Inc. reported slightly better-than-expected earnings after the market closed Thursday. However, like many other retailers, Gap said its sales fell as fewer customers made their way into stores.

There have been also concerns about the strength of the Chinese stock market.

However, China’s Shanghai Composite index rose for a second day – gaining 1.7% – after rattling investors worldwide when it tumbled earlier this week.

Elsewhere, Japan’s Nikkei 225 stock average fell 1.4% and Hong Kong’s Hang Seng dropped 0.6%.

London’s FTSE 100 index gained 1.09%, Frankfurt’s DAX rose 1.5% while the Paris CAC 40 advanced 1.6%.

In other corporate news, Open Text Corp. (TSX:OTC) warned revenues will be lower than expected from its newly acquired Vignette Corp. online software business, but said it remains on track to meet overall growth expectations. The Waterloo, Ont.-based software developer said it will discount Vignette’s licence revenues by up to 40% as the recession weighs on its sales.

The U.S. State Department issued a permit Thursday allowing construction of a pipeline that will bring crude oil to the U.S. from Canada’s oil sands. With the permit in hand, Enbridge Inc. (TSX:ENB) plans to start construction work on the Alberta Clipper pipeline, which will run through Minnesota and the northeastern corner of North Dakota from Superior, Wis., to Hardisty, Alta.

(The Canadian Press)

North American markets

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Dow Jones	9,350.05	+70.89 or +0.76%	+6.54%
S&P 500	1,007.37	+10.91 or +1.09%	+11.53%
NASDAQ	1,989.22	+19.98 or +1.01%	+26.14%
TSX Composite	10,700.51	+13.68 or +0.13%	+19.06%

International markets

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	Open	Change	YTD
Nikkei	10,238.20	-145.21 or -1.40%	+15.56%
Hang Seng	20,199.02	-129.84 or -0.64%	+40.39%
SENSEX	15,240.83	+228.51 or +1.52%	+57.98%
FTSE 100	4,810.60	+54.02 or +1.14%	+8.49%
CAC 40	3,562.04	+56.72 or +1.62%	+10.69%
DAX	5,402.31	+91.25 or +1.72%	+12.31%

Bonds

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Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	103.06	102.88	3.38
Cdn. 30-year bond	118.79	118.54	3.89
U.S. 10-year bond	101.75	101.37	3.42
U.S. 30-year bond	104.59	103.50	4.23

Currency

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BoC Open	Today	Previous
Canadian $	0.9219	0.9197
US $	1.0847	1.0873

Euro Spot Rate	Today	Previous
Canadian $	0.6440	0.6451
Euro	1.5529	1.5502

Commodities

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Gold	AM	PM
London Gold Fix ($US)	$ 941.50	$940.50

Oil	Open	Change
WTI Crude Future (US)	$74.30	+$1.39 or +1.91%

(08/21/09)