Market Update: An upward revision to US second quarter GDP estimates has equity markets in a good mood this morning. The US economy expanded at a 2.5% pace through the April – June quarter, exceeding the 2.2% pace economists had expected. Shares of Verizon are up as details emerge of a possible buyout of Vodafone’s $130B stake in their wireless operation. Of course that would mean $130B fewer greenbacks in their war chest, some of which has potentially been earmarked for expansion into Canada. Telus, BCE and Rogers are up nicely on the reduced threat of competition. The financial sector in Canada is also gaining momentum after Royal, TD and CIBC joined the parade of better than expected earnings. Royal and TD boosted their dividends. The TSX is up 63 pts. The Dow is up 74 pts. The Canadian dollar is down 20 bps as the US dollar gets a boost from the GDP report. Bond yields are up to 1.99% for the 5-year Canada and 2.64% for the ten. Gold is down $13 to US$1406/oz. Natural gas is down 6 cents to US$3.52/mbtu. Oil is off 88 cents to US$109.22/barrel. Have a great day.
Posted on: Thu, 29 Aug 2013 23:05:31 +0000
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