P.M. bulletin: August 19, 2009

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

The Toronto stock market closed little changed Wednesday at the end of a volatile session amid worries about a global economic recovery.

The S&P/TSX composite index closed 12.99 points higher to 10,686.83, lifted by gains in the financials sector, after initially tumbling more than 150 points after China’s benchmark Shanghai index plunged more than four per cent.

The slide in China was triggered by worries about profits, the strength of China’s recovery and possible changes in Beijing’s easy credit policy that has helped to fuel the strong run in Chinese stocks this year.

Markets made a strong move into positive territory late in the morning, led by a strong showing in the energy sector after data showed a large drawdown in American crude oil stocks last week.

But the energy sector only closed up a modest 0.28% even as the news sent the September crude contract on the New York Mercantile Exchange up $3.23 to US$72.42 a barrel.

The TSX is up about 40% since early March on rising hopes for a strong economic recovery, but recent signs of weakness at the consumer level in the United States suggests the rally may be looking stretched.

The Canadian dollar also shook off early declines to advance 0.51 of a cent to 91.27 cents U.S. as Statistics Canada reported that prices fell in July on an annual basis and on a month-to-month basis, dipping 0.3% from June.

Canada’s annual inflation rate slid to the lowest level in 56 years last month, as overall prices fell 0.9% from where they stood last July.

Meanwhile, Statistics Canada’s composite leading index rose 0.4% after small declines in May and June were revised upward to no change. The agency says July’s increase was the first advance since August 2008.

U.S. markets also bounced off early lows as the Dow Jones industrial average moved up 61.22 points to 9,279.16.

The Nasdaq composite index climbed 13.32 points to 1,969.24, while the S&P 500 index rose 6.79 points to 996.46 amid a pair of disappointing earnings reports.

The TSX gold sector was flat as the December bullion contract in New York rose $5.60 to US$944.80.

(THE CANADIAN PRESS)

North American markets

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	Close	Change	YTD
Dow Jones	9,279.16	+61.22 or +0.66%	+5.73%
S&P 500	996.46	+6.79 or +0.69%	+10.32%
NASDAQ	1,969.24	+13.32 or +0.68%	+24.87%
TSX Composite	10,685.83	+11.99 or +0.11%	+18.89%

International markets

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	Close	Change	YTD
Nikkei	10,204.00	-80.96 or -0.79%	+15.18%
Hang Seng	19,954.23	-352.04 or -1.73%	+38.69%
SENSEX	14,809.64	-225.62 or -1.50%	+53.51%
FTSE 100	4,689.67	+3.89 or +0.08%	+5.76%
CAC 40	3,450.34	-0.35 or -0.01%	+7.22%
DAX	5,231.98	-18.76 or -0.36%	+8.77%

Bonds

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Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	102.88	102.77	3.40
Cdn. 30-year bond	118.54	118.54	3.90
U.S. 10-year bond	101.37	100.92	3.46
U.S. 30-year bond	103.50	103.44	4.29

Currency

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BoC Close	Today	Previous
Canadian $	0.9127	0.9076
US $	1.0956	1.1018

Euro Spot Rate	Today	Previous
Canadian $	0.6412	0.6424
Euro	1.5595	1.5567

Commodities

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Gold	AM	PM
London Gold Fix ($US)	$934.25	$943.00

Oil	Close	Change
WTI Crude Future (US)	$72.21	+$3.02 or +4.36%

(08/19/09)