A.M. market numbers: December 17, 2009

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

The Toronto stock market appeared set to open lower Thursday as a higher U.S. dollar put downward pressure on commodity prices.

Most world markets were lower Thursday, as were stock futures in New York, as the greenback strengthened to a three-month high against the euro after the Federal Reserve signalled it would start undoing some of its emergency supports next year as the economic recovery gathers pace.

Dow futures were 34 points, or 0.3%, lower at 10,356 while the broader S&P 500 futures fell four points, or 0.4%, to 1,101.7.

Commodity prices also took a hit as their value declined compared to the dollar. The price of oil lost 70 cents to US$71.96, while gold prices fell $20.60 to US$1,115.60.

Meanwhile, the loonie also plunged, losing 1.08 cents to 93.22 cents US.

On Wednesday, the S&P/TSX composite index gained 96.02 points to 11,637.04 as metal prices got a boost and the U.S. Federal Reserve kept interest rates unchanged, as expected.

However, the U.S. Fed also said it would end extraordinary supports for the economy in the coming year. The timeline was laid out after the central bank left interest rates near zero, as expected, but also said that weakness in the job market is “abating.”

The news stoked speculation the central bank might increase interest rates sooner than expected, leading many investors to shift back into the dollar and out of stocks.

World stock markets were also lower Thursday in response to the Fed’s comments.

In Europe, the FTSE 100 index of leading British shares was down 31 points, or 0.6%, at 5,289.26 while Germany’s DAX fell 28.08 points, or 0.5%, to 5,875.35. The CAC-40 in France was 22.32 points, or 0.6%, lower at 3,853.50.

Earlier in Asia, the Nikkei 225 stock average shed 13.61 points, or 0.1%, to 10,163.80, and Hong Kong’s Hang Seng slid 264.11 points, or 1.2%, to 21,347.63.

America’s ultra-low borrowing costs have contributed to a nine-month bull run in stocks and the sharp fall in the dollar this year. Cheap dollars were used to buy potentially higher-yielding assets like stocks, commodities and foreign currencies.

Investors are also fully aware that gains could well peter out as this is the last full trading week of 2009 and investors may use the opportunity to bolster their portfolios by locking in gains made over the last nine months.

(The Canadian Press)

North American markets (previous close)

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	Open	Change	YTD
Dow Jones	10,441.12	-10.88 or -0.10%	+18.97%
S&P 500	1,109.18	+1.26 or +0.11%	+22.80%
NASDAQ	2,206.91	+5.86 or +0.27%	+39.54%
TSX Composite	11,637.04	+96.02 or +0.83%	+29.48%

International markets

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	Open	Change	YTD
Nikkei	10,163.80	-13.61 or -0.13%	+14.72%
Hang Seng	21,347.63	-264.11 or -1.22%	+48.38%
SENSEX	16,894.25	-18.52 or -0.11%	+75.12%
FTSE 100	5,273.14	-47.12 or -0.89%	+18.92%
CAC 40	3,848.85	-26.97 or -0.70%	+19.60%
DAX	5,861.90	-41.53 or -0.70%	+21.86%

Bonds

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Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	102.93	102.85	3.39
Cdn. 30-year bond	116.98	116.65	3.98
U.S. 10-year bond	98.69	98.30	3.53
U.S. 30-year bond	98.28	97.63	4.48

Currency

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BoC Close	Today	Previous
Canadian $	0.9342	0.9432
US $	1.0704	1.0602

Euro Spot Rate	Today	Previous
Canadian $	0.6495	0.6482
Euro	1.5395	1.5427

Commodities

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Gold	AM	PM
London Gold Fix ($US)	$1,121.50	$1,134.00

Oil	Open	Change
WTI Crude Future (US)	$72.09	-$0.57 or -0.78%

(12/17/09)