A.M. market numbers: October 20, 2009

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

Higher commodity and technology stocks pushed the Toronto stock market slightly higher Tuesday with investors reassured that the Bank of Canada is leaving interest rates at 0.25% – and will likely keep rates that low until the middle of next year.

The S&P/TSX composite index moved up 29.9 points to 11,568.3 as the central bank added that recent indicators point to the start of a global recovery “from a deep, synchronous recession.”

But it warned that heightened volatility and the sharp rise in the Canadian dollar "are working to slow growth and subdue inflation pressures."

The loonie started 2009 at 82.1 cents US and on Tuesday was down 0.91 of a cent to 96.24 cents US as the bank said the country’s gross domestic product is still expected to grow by three per cent next year, but only 3.3% in 2011, two-tenths of a point less than the Bank of Canada had previously forecast in July.

The Canadian dollar has seen particularly sharp runups of late because of a weakening U.S. dollar and higher commodity prices, particularly oil.

Toronto energy stocks higher with oil prices stable at one year highs. The November crude contract on the New York Mercantile Exchange eased two cents to US$79.59 a barrel.

In other economic data, Statistics Canada’s composite leading index a snapshot of future economic activity – rose by 1.1% in September, its fourth straight gain. And the August reading was revised up from 1.1% to 1.2%. In September, seven of the 10 components advanced, led again by the stock market and the housing index.

Statistics Canada blames weaker sales in automotive products, machinery and electronic equipment, and building materials for the decline.

New York markets were weak as investors balanced positive earnings reports with mixed economic data.

The Dow Jones industrial average declined 23.4 points to 10,068.8.

The Nasdaq composite index pulled back 4.47 points to 2,171.85 and the S&P futures was down 4.25 points to 1,093.65.

The latest bout of earnings optimism took off after the market close Monday when both Apple Inc. and Texas Instruments delivered better-than-expected earnings reports and helped restore investor confidence that was shaken late last week by big banks’ loan losses.

There were also mixed signals from new U.S. government reports on the state of the economic recovery.

The Labour Department said lower energy prices pushed U.S. wholesale prices lower in September, leaving a larger-than-expected monthly decline in the producer price index. Wall Street economists expected a flat reading.

The gold sector advanced 0.46% as December bullion gained $6.70 to US$1,064.80 an ounce.

Overseas, Japan’s Nikkei 225 index gained one per cent and Hong Kong’s index rose 0.8%.

London’s FTSE 100 was off 0.17%, Frankfurt’s DAX dipped 0.1%, while the Paris CAC 40 was flat.

(The Canadian Press)

North American markets

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Dow Jones	10,092.19	+96.28 or +0.96%	+14.99%
S&P 500	1,097.91	+10.23 or +0.94%	+21.55%
NASDAQ	2,176.32	+19.52 or +0.91%	+38.00%
TSX Composite	11,538.39	+33.63 or +0.29%	+28.38%

International markets

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	Open	Change	YTD
Nikkei	10,336.84	+100.33 or +0.98%	+16.67%
Hang Seng	22,384.96	+184.50 or +0.83%	+55.59%
SENSEX	17,223.01	-103.00 or -0.59%	+78.53%
FTSE 100	5,256.90	-24.64 or -0.47%	+18.55%
CAC 40	3,874.37	-17.99 or -0.46%	+20.40%
DAX	5,823.00	-29.56 or -0.51%	+21.06%

Bonds

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Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	102.61	102.03	3.43
Cdn. 30-year bond	118.10	117.40	3.92
U.S. 10-year bond	102.59	101.22	3.31
U.S. 30-year bond	106.42	104.09	4.12

Currency

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BoC Open	Today	Previous
Canadian $	0.9606	0.9639
US $	1.0410	1.0402

Euro Spot Rate	Today	Previous
Canadian $	0.6423	0.6468
Euro	1.5570	1.5460

Commodities

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Gold	AM	PM
London Gold Fix ($US)	$1064.00	$1061.75

Oil	Open	Change
WTI Crude Future (US)	$79.15	-$0.46 or -0.58%

(10/20/09)