Market numbers: September 23, 2009

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

North American stock markets looked to be heading for a slightly higher open ahead of a U.S. Federal Reserve afternoon announcement on interest rates.

While the U.S. central bank is widely expected to keep its benchmark interest rate at a record low of near zero, investors are hoping for more clues about the strength of the economy’s recovery.

In New York, the Dow Jones industrial futures were up 17 points to 9,788, the Nasdaq futures gained 4.8 points to 1,739 while the S&P 500 futures added 2.7 points to 1,070.

The Canadian dollar moved up 0.07 of a cent to 93.61 cents US.

The Toronto stock market ran up 161 points Tuesday in the latest instalment of a rally that stated in early March and has sent the TSX and other major market indicators up more than 50%.

However, investors are worried that stocks have become overvalued, especially with the strength of the economy’s recovery still in question.

Despite those concerns, breaks in the stock market’s rally have been few and brief with investors ready to buy into those dips.

Investors also took another sign of improving economic conditions. The Bank of Canada said after the market close Tuesday that financial conditions have improved sufficiently that it can start ending some of the emergency financing programs that helped keep money markets functioning during the height of the credit crunch.

The announcement does not sound the all-clear, since Canada’s central bank is still retaining its main facility allowing the banks access to cash, but it is likely the first step in winding down the extraordinary measures put in place last fall.

Energy stocks were a prime mover on the TSX on Tuesday but they’re expected to show little life at the open with the November crude contract on the New York Mercantile Exchange down 25 cents to US$71.51 a barrel.

The dip came after the American Petroleum Institute said that U.S. oil inventories rose unexpectedly last week. Crude stocks increased 276,000 barrels while analysts had expected a drop of 2.25 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

Metals were mixed with the December gold contract on the New York Mercantile Exchange ahead $1.40 to US$1,016.90 an ounce while December copper on the Nymex moved six cents lower to US$2.80 a pound.

Toward the end of the week, markets will be focusing on the Group of 20 meeting of the world’s leading economies on Thursday and Friday in Pittsburgh.

“We have still got a little calm before seeing what happens later on,” said James Hughes, market analyst at CMC Markets. “We have got the G-20 and FOMC and that’s really going to dominate where these markets go.”

Overseas, London’s FTSE 100 index gained 0.59%, Frankfurt’s DAX was ahead 0.43% and the Paris CAC 40 was up 0.41%.

Most Asian markets closed moderately lower. Japan’s market was closed for a national holiday.

Hong Kong’s Hang Seng index fell 0.5%, China’s Shanghai index shed 1.9%.

In corporate news, AGF Management Ltd. (TSX:AGF.B) said its net income fell to $22.8 million or 25 cents per share on a diluted basis in the third quarter, down from $41.1 million or 46 cents per share in the same period of 2008. Revenue decreased 20.5% to $146.9 million.

Royal Bank of Canada (TSX:RY) has revised the way it pays its traders and investment bankers in its capital markets division so that bonus payments will be spread over three years and managing directors will be required to own a minimum stake in the bank.

BMO Financial Group (TSX:BMO) said Tuesday it has received approval from the China Banking Regulatory Commission to formally prepare for incorporation of its wholly owned subsidiary bank. The subsidiary will be named Bank of Montreal (China) Co. Ltd.

(The Canadian Press)

North American markets

Back to Top

Dow Jones	9,829.87	+51.01 or +0.52%	+12.00%
S&P 500	1,071.66	+7.00 or +0.66%	+18.64%
NASDAQ	2,146.30	+8.26 or +0.39%	+36.10%
TSX Composite	11,585.73	+161.12 or +1.41%	+28.91%

International markets

Back to Top

	Open	Change	YTD
Nikkei	10,370.54	-73.26 or -0.70%	+17.05%
Hang Seng	21,595.52	-105.62 or -0.49%	+50.10%
SENSEX	16,719.50	-166.93 or -0.99%	+73.31%
FTSE 100	5,171.18	+28.58 or +0.56%	+16.62%
CAC 40	3,837.29	+13.77 or +0.36%	+19.25%
DAX	5,727.21	+17.83 or +0.31%	+19.06%

Bonds

Back to Top

Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	102.76	102.83	3.41
Cdn. 30-year bond	117.89	118.09	3.93
U.S. 10-year bond	101.50	101.30	3.45
U.S. 30-year bond	105.06	104.64	4.20

Currency

Back to Top

BoC Open	Today	Previous
Canadian $	0.9361	0.9354
US $	1.0682	1.0691

Euro Spot Rate	Today	Previous
Canadian $	0.6324	0.6320
Euro	1.5813	1.5823

Commodities

Back to Top

Gold	AM	PM
London Gold Fix ($US)	$ 1014.75	$1014.00

Oil	Open	Change
WTI Crude Future (US)	$71.32	-$0.440 or -0.61%

(09/23/09)