Commodity selloff pushes TSX lower for 4th session; N.Y. little changed

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

The Toronto stock market piled on losses for a fourth session Wednesday, pressured by commodity stocks on doubts the spring rally has much momentum left.

The main S&P/TSX composite index fell 241.29 points to 10,066.11 as energy and mining stocks continued to retrench after helping boost the Toronto market as much as 40% since the rally began in early March.

In the past four sessions, 648 points or almost 6.5% have been carved from the index and opinion is divided on how much markets more could retreat.

On Wednesday,the energy sector fell 3.5% with the July crude contract on the New York Mercantile Exchange moved up 56 cents at US$71.03 a barrel.

The Canadian dollar reversed direction to move up 0.28 of a cent at 88.42 cents US.

New York markets were mainly flat on economic concerns, a disappointing outlook from FedEx Corp. and a downgrade of 18 banks by ratings agency Standard & Poor’s

The Dow Jones industrial average was 7.49 points lower to 8,497.18. The Nasdaq composite index gained 11.88 points to 1,808.06 while the S&P 500 index slipped 1.26 points to 910.71 after FedEx said it posted a fiscal fourth-quarter loss and forecast earnings well below analysts’ views in the next quarter. Its shares were down 72 cents to $50.70.

Investors also reviewed the White House’s plan for remaking the rules that govern Wall Street. The changes would award new powers to the U.S. Federal Reserve and establish a consumer protection agency.

Elsewhere, Standard & Poor’s cited concerns that volatility will remain in the financial industry and that banks are expected to face tighter regulatory oversight. The agency also said loan losses could grow beyond what many analysts expect.

Investors also took in news of lower than expected U.S. inflation, lower Canadian wholesale sales and an improvement in an important gauge in future economic activity.

The August bullion contract on the Nymex rose $3.80 to US$936 an ounce and the gold sector drifted 0.3% lower.

(THE CANADIAN PRESS)

North American markets

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	Close	Change	YTD
Dow Jones	8,497.18	-7.49 or -0.09%	-3.18%
S&P 500	910.71	-1.26 or -0.14%	+0.83%
NASDAQ	1,808.06	+11.88 or +0.66%	+14.65%
TSX Composite	10,066.11	-241.29 or -2.34%	+12.00%

International markets

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	Close	Change	YTD
Nikkei	9,840.85	+87.97 or +0.90%	+11.08%
Hang Seng	18,084.60	-80.90 or -0.45%	+25.70%
SENSEX	14,522.84	-435.07 or -2.91%	+50.54%
FTSE 100	4,278.46	-50.11 or -1.16%	-3.51%
CAC 40	3,161.14	-52.81 or -1.64%	-1.77%
DAX	4,799.98	-90.74 or -1.86%	-0.21%

Bonds

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Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	102.68	102.63	3.43
Cdn. 30-year bond	118.74	118.81	3.89
U.S. 10-year bond	95.42	95.69	3.65
U.S. 30-year bond	95.75	96.47	4.46

Currency

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BoC Close	Today	Previous
Canadian $	0.8842	0.8814
US $	1.1310	1.1346

Euro Spot Rate	Today	Previous
Canadian $	0.6337	0.6369
Euro	1.5781	1.5701

Commodities

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Gold	AM	PM
London Gold Fix ($US)	$933.75	$930.50

Oil	Close	Change
WTI Crude Future (US)	$70.96	+$0.49 or +0.70%

(06/17/09)