A.M. market numbers: January 20, 2009

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

World markets dropped Wednesday, led by a near 3 per cent tumble in Shanghai’s stock benchmark, as investors fretted about new curbs on the lavish bank lending that has driven China’s economic revival.

The losses came despite Wall Street’s gains on Tuesday, where the Dow Jones industrial average rose 1.1 per cent to a 15-month high. Oil fell to near $78 a barrel while the dollar was stronger against euro and down against the yen.

As trading started in Europe, benchmarks in Germany, Britain and France were lower by about 0.2 per cent. Futures augured a retreat Wednesday on Wall Street. S&P futures fell 3 points, or 0.3 per cent, to 1,142.70.

In China, the Shanghai Composite Index dived 95.02, or 2.9 per cent, to 3,151.85 following a newspaper report that some banks were ordered to cease lending for the rest of January after exceeding credit limits. That raised fears China’s recovery could wane, undermining a fragile global economy.

The Chinese markets were already jittery following a speech Tuesday night by Premier Wen Jiabao that many interpreted as a sign the flow of easy credit will be stanched.

Some analysts say Beijing has already begun to take more steps to rein in stimulus-fuelled liquidity. China earlier this month made a tentative move to slow bank lending.

Hong Kong followed Shanghai’s lead with the Hang Seng dropping 391.81, or 1.8 per cent, to 21,286.17.

Japan’s Nikkei 225 stock average lost 27.38, or 0.3 per cent, to 10,737.52. Japan Airlines slumped 60 per cent to 2 yen after filing for one of the country’s largest bankruptcies on Tuesday. JAL shares will be removed from the stock exchange on Feb. 20.

Singapore’s market was off 0.7 per cent, Taiwan retreated 0.3 per cent and Thailand’s stock measure lost 0.8 per cent.

South Korea’s Kospi shrugged off the regional fall, advancing 0.2 per cent to 1,714.38 and Australia’s stock measure crept higher by 0.1 per cent.

In the U.S. on Tuesday, the Dow rose 115.78, or 1.1 per cent, to 10,725.43. The broader Standard&Poor’s 500 index rose 14.20, or 1.3 per cent, to 1,150.23. The technology-heavy Nasdaq composite index rose 32.41, or 1.4 per cent, to 2,320.40.

Stocks have been climbing for 10 months on hopes that an easing recession would boost corporate profits. But lingering problems like high unemployment and a weak housing market in the U.S. have raised questions about whether the rally has been overdone.

Earnings reports — which can provide a guide to real demand in the economy — are due this week from Bank of America Corp., eBay Inc., General Electric Co., Goldman Sachs Group Inc., Google Inc., Morgan Stanley and Wells Fargo&Co.

Results already released from corporate bellwethers have been a mixed bag.

Oil prices fell in Asia amid expectations a U.S. crude inventory report will show demand for the commodity remains weak.

Benchmark crude for February delivery slid 72 cents to $78.30 in electronic trading on the New York Mercantile Exchange. The contract rose $1.02 to settle at $79.02 on Tuesday.

In currencies, the dollar fell to 90.81 yen from 91.11 yen. The euro fell to $1.4208 from $1.4291.

(The Canadian Press)

North American markets

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	Open	Change	2009 Full Year
Dow Jones	10,725.43	+115.78 or +1.09%	+2.85%
S&P 500	1,150.23	+14.20 or +1.25%	+3.15%
NASDAQ	2,320.40	+32.41 or +1.42%	+2.26%
TSX Composite	11,763.42	+12.88 or +0.11%	+0.15%

International markets

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	Open	Change	YTD
Nikkei	10,737.52	-27.38 or -0.25%	+1.81%
Hang Seng	21,286.17	-391.81 or -1.81%	-2.68%
SENSEX	17,474.49	-11.57 or -0.07%	+0.06%
FTSE 100	5,494.45	-18.69 or -0.34%	+1.51%
CAC 40	4,001.29	-8.38 or -0.21%	+1.65%
DAX	5,962.96	-13.52 or -0.23%	+0.09%

Bonds

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Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	102.18	102.27	3.48
Cdn. 30-year bond	115.75	115.98	4.04
U.S. 10-year bond	97.59	97.55	3.67
U.S. 30-year bond	96.93	96.62	4.56

Currency

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BoC Close	Today	Previous
Canadian $	0.9602	0.9702
US $	1.0414	1.0307

Euro Spot Rate	Today	Previous
Canadian $	0.6792	0.6784
Euro	1.4722	1.4741

Commodities

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Gold	AM	PM
London Gold Fix ($US)	$1,129.00	$1,133.00

Oil	Open	Change
WTI Crude Future (US)	$77.93	-$1.09 or -1.38%

(01/20/10)