•Canadian Marketplace: The S&P/TSX composite index managed to hold onto decent gains again today, putting it on track to post a three for three day record of stock market gains for 2009. At noon, the commodity heavy index was up 103 points or 1.1 % for the day.
The energy rally that lifted Canada’s benchmark index at the start of trading lost some momentum and glitter toward midday, when the price of crude oil halted it’s gains and fell slightly to $48 (U.S) per barrel. Energy stocks, which had shown an impressive rally, were last seen clinging to positive territory, with gains of 1.2%. Financials, meanwhile, were very strong, rising 2.5% for the day, followed by industrials at 2.2% and information technology stocks rising 2%.
It has been an auspicious start to 2009 for the Toronto market, with the main index up approximately 5% so far, as investors hope that a bottom is within sight and the second half of the year will see a lessening of pressure on global economies. Some analysts believe these increases are not likely to be sustainable over the long term. This market, holding onto these recent gains, would certainly cause many investors to pause and take a deep breath.
•U.S. Marketplace: Minutes of the December meeting of the U.S. Federal Reserve policy-makers showed they wanted to send a clear message that, they intended to keep interest rates very low for an extended period to revive the sharply contracting economy. Participants judged that communicating the committee’s expectation that short-term interest rates were likely to stay exceptionally low for some time could be useful.
At the Dec. 15-16 meeting, the U.S. central bank’s interest rate setting committee members chopped benchmark rates to a range between zero and 0.25% and said they are prepared to flood the economy with money to stimulate economic activity.
•International News: Today, Argentine stocks closed more than 5% higher, driven by a 10% jump in index heavyweight Tenaris, to mark it’s sixth straight session of gains. Steelmaker Tenaris, the world’s leading producer of seamless steel tubes for the energy industry, rallied on stronger oil prices to 42.35 pesos a share.
The rise in crude oil pushed Tenaris and Brazil’s Petrobras higher, and these stocks accounted for 60% of total trade volume.
…..doug T
