A.M. market numbers: December 7, 2009

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

The Toronto stock market headed for a lower opening Monday as a surging American currency sent commodity prices lower.

The Canadian dollar was down 0.12 of a cent to 94.41 cents US.

U.S. futures also pointed to a negative open amid investor nervousness about this week’s U.S. Federal Reserve meeting on interest rates.

The Dow Jones industrial futures stepped back 41 points to 10,359, the Nasdaq futures points to while the S&P 500 futures declined 2.1 points to 1,106.

Stock markets closed lower on Friday despite much better than expected employment data for November in Canada and particularly in the United States.

But that optimism about a reviving economy was tempered by a growing perception that the U.S. Federal Reserve may start to withdraw some of its stimulative measures — including interest rates near zero — sooner than anticipated.

And with the year-end looming, analysts said investors may be looking to wind down their trading positions and book some profits, especially as this time last year most faced hefty losses.

The strong rally that ran along with scarcely a break since early March has left the TSX up about 28% year to date while the Dow is ahead 18%.

Energy stocks will likely be under selling pressure as the January crude contract on the New York Mercantile Exchange fell for a fourth session, down 57 cents to US$74.90 a barrel. Selling picked up on Thursday after data showed a surprising jump in U.S. inventories.

Gold prices dropped sharply for a second session, down $25.20 to US$1,144.30 an ounce while March copper moved down 6.35 cents to US$3.17 a pound.

Earlier in Asia, Japanese stocks were buoyed by the weaker yen, which makes the country’s exports into the United States cheaper. Investors were getting increasingly concerned over the last few weeks that the rise in the yen to 14-year dollar highs against the U.S. dollar was threatening to hit the country’s exports.

Japan’s benchmark Nikkei 225 average rose for a sixth straight session, climbing 1.5%, to 10,167.60, the highest close since late October. In Hong Kong, the Hang Seng index fell 0.8%.

London’s FTSE 100 index was down 0.55%, Frankfurt’s DAX lost 0.53% and the Paris CAC 40 moved up 0.96%.

In corporate news, U.S. fertilizer company CF Industries Holdings Inc. said Monday it had increased its offer for rival Terra Industries Inc. by US$4.75 in cash per share. CF, which is fending off an unwanted takeover bid by Agrium Inc. of Calgary, is now offering to acquire Terra for US$36.75 in cash and 0.1034 of a share of CF stock for each Terra share.

Thompson Creek Metals Company Inc. is budgeting US$298 million for capital expenditures in 2010 to expand the Endako Mine project and proceed with maintenance and upgrades postponed to conserve cash in 2009.

Calgary-based oil and as company PetroBakken Energy Ltd. said it expects to increase production in 2010 by 15% over this year, while maintaining its dividend rate. PetroBakken said it’s on track to meet its 2009 guidance of the equivalent of 37,000 barrels per day, not counting its Alberta output, and expects to increase output to 42,500 boe/d by the end of next year. It will spend the majority of its 2010 capital program on drilling in the Bakken resource play in southeastern Saskatchewan.

(The Canadian Press)

North American markets (previous close)

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	Open	Change	YTD
Dow Jones	10,388.90	+22.75 or +0.22%	+18.37%
S&P 500	1,105.89	+5.97 or +0.54%	+22.43%
NASDAQ	2,194.35	+21.21 or +0.98%	+39.14%
TSX Composite	11,510.80	-125.75 or -1.08%	+28.07%

International markets

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	Open	Change	YTD
Nikkei	10,167.60	+145.01 or +1.45%	+14.76%
Hang Seng	22,324.96	-173.19 or -0.77%	+55.17%
SENSEX	16,983.14	-118.40 or -0.69%	+76.04%
FTSE 100	5,293.34	-29.02 or -0.55%	+19.38%
CAC 40	3,834.18	-12.44 or -0.32%	+19.15%
DAX	5,787.51	-30.14 or -0.52%	+20.32%

Bonds

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Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	103.53	104.18	3.31
Cdn. 30-year bond	118.35	119.05	3.91
U.S. 10-year bond	99.44	100.01	3.44
U.S. 30-year bond	99.84	100.72	4.38

Currency

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BoC Close	Today	Previous
Canadian $	0.9409	0.9573
US $	1.0628	1.0446

Euro Spot Rate	Today	Previous
Canadian $	0.6384	0.6353
Euro	1.5664	1.5741

Commodities

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Gold	AM	PM
London Gold Fix ($US)	$1,147.50	$1,190.25

Oil	Open	Change
WTI Crude Future (US)	$74.80	-$0.67 or -0.89%

(12/07/09)