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Commodity Prices Improve the Loonie Commodity Prices Improve the Loonie(0)

Canadian Dollar improves on Commodity Prices

The Canadian greenback leaped nearly an entire US cent Wednesday as costs for oil and metals ongoing to recoup from multi-month lows.

The commodity-sensitive forex was up .ninety five of the cent to ninety seven.29 cents US as traders felt inclined to get up more risky property for example shares, items and resource-based foreign currencies.

It absolutely was decrease previously inside the session pursuing the European Central Financial institution unsuccessful to point some readiness to handle decisively using the region’s financial debt crisis.

The Come early july crude agreement round the New It is possible to Mercantile Trade shut up seventy three cents to US$85.02 a barrel. Costs are actually buffeted during the last couple of days since the deteriorating eurozone turmoil has postponed a previously fragile international financial recovery.

Costs for copper, noticed as an financial bellwether since it is utilized in a lot of applications, leaped 9 cents to US$3.38 1 lb.

Gold costs also improved while using August agreement forward $17.thirty to US$1,634.twenty an oz ..

The ECB previously stated within the day it became maintaining its important price unchanged at 1 %.

There was hopes ECB chief Mario Draghi would reveal the lender is ready to chop the pace these month and concurrently approve much more stimulus actions to be able to spur government authorities to do something on their own, for instance nearer fiscal ties and also the development of a financial union.

Draghi informed a information convention pursuing the interest announcement that banking institutions should additional reinforce their stability sheets.

Numerous specialists anticipated that method, praoclaiming that the bank’s inaction would spur political leaders to hash out new framework.

Marketplaces happen to be whipsawed over the last month by expanding concerns concerning the eurozone financial debt crisis, including the opportunity a holiday in greece may have to leave the monetary union. But issues have significantly improved in current times about the healthiness of The language banking institutions, which contain huge amounts of poisonous financial products as a result from the collapse in the country’s real estate sector.

The united states requirements cash in order to save its ailing banking institutions, but tend to currently only obtain this kind of the aid of the EU in the authorities bailout package deal. Madrid adamantly really wants to steer clear of this type of answer, because this indicates fellow eurozone nations and also the Globally Monetary Fund could possibly be permitted to impose fiscal recommendations across the nation.

The world is still made to spend higher rates of interest on its financial debt, coming near a week ago towards the 7 % degree, that’s broadly known as not sustainable.

The generate on Spain’s important 10-year bond surrounded decrease in order to six.24 % Wednesday on hopes the Eu may be relocating nearer towards applying actions which could relieve the country’s overall economy.

You will discover also hopes the U.S. Fed may offer much more stimulus for the economic climate, supporting self-confidence inside international economic climate.

China Cuts Interest Rates for First time in Years China Cuts Interest Rates for First time in Years(0)

China Cutting Interest Rates

China reduce its benchmark lending price Thursday the very first time in almost four many years, growing efforts to reverse a clear financial depression.

A person’s eye price more than a one-year loan will most likely be reduce having a quarter percentage indicate six.31 percent efficient Friday, the central financial institution announced. It completely was the extremely initial price reduce because November 2008.

Beijing has presented numerous procedures to encourage the economic climate following development fell to some almost three-year reduced of eight.one % inside the initial 1 / 4 and April manufacturer output increased at its slowest price since the 2008 crisis. Private market authorities anticipate this quarter’s development to fall additional.

The government claims it’ll pump massive quantities of dollars in to the economic climate via investing on developing low-cost housing, airports also as other public functions. Additionally, it has authorized a wave of significant investments by state businesses.

Nevertheless, communist frontrunners are shifting cautiously following their massive stimulus responding for that 2008 monetary crisis fuelled inflation along with a inefficient developing boom.

We’ve spent two many years tightening lending and investment curbs to awesome an overheated economic climate, the us government reversed program in December following exporters had been hit by means of a plunge in international interest in Chinese goods.

On Might twelve, regulators reduce the minimal quantity of reserves Chinese banking institutions need to hold in an additional work to improve lending. Analysts declared may have small impact simply because struggling companies had been unlikely to borrow.

Month-to-month information due to be reported earlier this week are needed to demonstrate an extra deceleration in industrial activity.

Thursday’s price reduce was little but in line with previous moves by China’s central financial institution. Beijing features a tendency to use little modifications like a signal to banking institutions, businesses and individuals who it approves much more borrowing.

Mitel Networks Soon to be on the TSX? Mitel Networks Soon to be on the TSX?(0)

Mitel Networks Looks to List on the TSX

Mitel Networks announced today that it intends to opt into the Toronto Stock Exchange.

The Ottawa supplier of telephone and communications methods for companies might be around the Nasdaq within the usa inside the final two many years.

Within a statement Wednesday, Mitel stated the move is aimed at attracting additional Canadian investment and gaining the focus from the nearby base of analysts. It stated it has planned to locate a Toronto listing because 2010.

The business would not usually comment additional on Wednesday.

Mark Thompson, an insider trader following Mitel Networks, stated that this decision will certainly grab numerous and increase Canadian spotlight on the business. Shuttleworth stated Mitel is generally ignored by monetary analysts around the Nasdaq because of its comparatively little marketplace capitalization.

Mitel’s marketplace cap, worth of all shares excellent, is about $225 million U.S. concerning the Nasdaq.

“There is a lot interest amongst Canadian institutional traders, as well as retail traders, for that Mitel story,” stated Shuttleworth. “By listing around the TSX it is simpler for Canadian institutions to take part in (in trading). U.S. analysts do not truly care because the marketplace cap isn’t that large. Right here in Toronto Mitel is really a pretty large deal. They’re likely to get much more analyst coverage comprehending that indicates tons much more individuals speaking.”

Mitel was founded in 1973. Within the company’s most current quarter, ended Jan. 31, Mitel reported operating revenue of $8.eight million U.S., in comparison to a sensible loss of $1.Two million U.S. to get a comparable period 2009. Revenue more than the exact same period jumped 5 % year-over-year to $150.five million U.S.

The company will report its fourth quarter earnings on June 19. The business has previously forecast that revenue will most likely be in between $152 million and $157 million U.S. in comparison with $152.two million U.S. within the exact same period 2009.

The company’s share cost closed at $4.18 around the Nasdaq Wednesday, down four cents.

TSX Closing Bell June 06 TSX Closing Bell June 06(0)

Stock Markets in the Green Across the Board

We saw a nice run to end the day of Wednesday June 6th with the TSX gaining just over 125 points, the Dow Jones had a very nice day up 236 points and the NASDAQ finished positive with a modest 66 points. This positive return to the markets was from previous down days and a bit better than expected employment and economic growth from the U.S Aprils earnings. Commodities were also a strong per-swaying factor to the TSX positive numbers with Gold up $17 on the day and light sweet crude up $0.89  The Lonnie had another boring day with a movement of just a then of a cent in the green. Analysis seem to agree that it maybe a good time to start buying the Lonnie back against the American green back. We have also seen a larger than average volume on the Forex markets with people grabing the CAD dollar at its lows.

What to Expect for Tomorrow

Oil Dri Corp Amer will release their earnings report during the trading day, symbol; ODC This will be a preview look into how other oil and gas drilling plays will have earned and to see if they can beat their expectations on earnings of 7 cents per share.

 

Taku Gold a Hot Penny Stock to Buy Taku Gold a Hot Penny Stock to Buy(0)

Taku Gold Corp Penny Stock Watch

Company Overview Current Stock Price Error opening: http://finance.yahoo.com/d/quotes.csv?s=TAK&f=sl1c1

Taku Gold Corp. is a resource and exploration company in the Yukon region of North Canada with considerable holding. It has become among the biggest White Gold District stakeholders, which is home to many important gold finds and is fast rising as the centre of the latest Yukon Gold Rush. Other than the properties at White Gold, Taku Gold is also finding poignant results in its TAG Gold-Silver Project. TAG project is situated in northern British Columbia and has a 6.2 kilometer fault with gold that has actually yielded silver and gold in 67 holes drilled till now.

Assets of White Gold Yukon 

Taku Gold has 9 properties of 76,238 hectares and is presently among the biggest White Gold District’s stakeholders. Some of them are close to the properties of Kinross that have shown large resources. This region also has structures and rock types similar to the nearby discoveries by Kinross. Taku has already done a multi-sensor, high resolution, geophysical airborne survey on six of its properties.

Taku has also finished geochemical deep-auger surveys of 3 Properties and all of them show ongoing major production of placer gold. They have performed a limited diamond drilling and mechanical trenching curriculum on their White Gold Properties.

Dan Assets

It has 27 kilometers of well-defined, potential, fault system in the linear thrust of the northern expansion of the gold-bearing drift on the property of JP Ross situated 5km southwest. 2316 soil samples were obtained from the Dan property. They were obtained from the key grid and three minor grids at 50 meter sample intervals on rows separated by about 100 meter airborne geophysical readings of 1091 line kilometers were also collected.  Sampling of soil focused on the northwest section of the territory where as per the airborne magnetic data the thrust fault structure looks more composite. Geochemical results of the soil were usually low with two important results of 212ppbAu and 115ppb. These values are of the thrust fault as shown by the magnetic airborne data; soil sampling did not classify gold-in-soil trends.

Rosebute Assets

5158 samples of soil were collected from the two grids on the Rosebute property. They were based on 50 meters sample intervals spaced at a distance of about 100 meters. Airborne geophysical readings of 1107 line kilometers were also collected. The first grid situated in the northwestern section of the area. Outstanding geochemical results were obtained from the inconsistent region of about 550ha. There are 3 distinct, linear anomalies in the east trending of this region. The first one is well defined on 2200 meters and displays maximum value of up to 201ppb Au. Another well defined anomaly is 400 meters long and displays maximum value of up to 84ppb Au. The last anomaly is sporadically defined over 1100 meters and confirms a maximum value of about 155ppbAu. All the three east trending geochemical characteristics look like crosscutting the local geological fabric which as shown by the magnetic airborne data are typically northwesterly. The subsequent grid which covers an area of 1500ha and lies in the heart of the land offered just small anomalous values.

To put in short an excellent anomalous gold zone area has been documented in the northwest section of the Rosebute property. This 550 ha has three well marked linear gold trends. Soil sampling in the heart of the property gave many spot anomalies but in general has less potential for gold mineralization. Almost 60% of the property has not been placed under soil sampling work during 2010 and has to still be tested.

Sulphur Assets

This lies in the southeast trending ridge where noteworthy placer gold is available and it is ongoing. In 2010 the company did a radiometric geophysical and a high-definition, airborne magnetic survey in this region.

Quartz Assets

Quartz Creek is included in this property which has considerable amount of placer gold which continues to be mined. In 2010mid-September a 340 line km airborne geophysical and soil geochemical, deep auger-type, 901-sample survey was done on the 3022ha, 146 claim Quartz property. Preliminary sampling of soil was conducted at 50m intervals on lines separated by 450 meters. Nevertheless a group of 7 anomalous gold regions in the soil have been found in the northwest corner with a highest 24ppm Au value. This group is at the southern periphery of a strongly magnetic region seen through the geophysical airborne survey.

Montana Assets

Montana links to Kinross a property of JP Ross that houses the lower edge of the Steele Fork; where as shown by the restricted geological mapping and magnetic data is a thrust fault with likely gold mineralization.

In 2010 Taku worked on a complete high-definition, radiometric geophysical and airborne magnetic survey of the property demarcating a southeast trending magnetic structure which is situated to parallel to Steele Creek. 2010 Cursory prospecting shows that magnetic signature can be because of the thrust fault obvious by rich breccias and quartz veins down the Steele Creek. Placer gold found here could be due to the fault in the thrust.

Wounded Moose Assets

This is over a number of spherical airborne magnetic highs which is parallel to the Wounded Moose Creek. Production of placer gold has been documented here.

AM Assets

This comprises of the headwaters of Melba Creek and Australia where the production of placer gold has taken place. It also has a top airborne magnetic low which goes on from the Gold Run Creek, the most fruitful Klondike goldfields creeks.

Portland Assets

This envelops a chronological showing and has samples of almost 5.7 ounces per ton gold and is called the Gold Run. It was revealed in 1910 and includes widespread hand trenching, around 30 meters of shafting and 23 meters of adits. The work here has been in several hundred meters of an uncovered vein with sulphide-bearing quartz-breccia located on the crest of the ridge. The trending is the North West into the Portland Creek headwaters.

Bishop Assets

This is made up of a big region where work was done by the precious property retailers Vern Matkovich and Tom Morgan. It outlined a well-built, south east trending medium on the edge of a magnetic high. To test for placer gold auger drilling was done mechanically by the property retailers and they located atypical gold grains in the collected bedrock samples from all over the geophysical anomaly. Theses grains are dark yellow, angular and frequently fastened to fragments of quartz.

Burnham Assets

This is a 35 kilometer long contiguous block which covers the headwaters of Jensen Creeks, Australia, Rob Roy, Melba, Arkansas, Burnham, and Kentucky. All the creeks are tributaries of the Dominion Creek where considerable placer gold concentration has been documented from the 1898 Klondike Gold Rush.

Where to set the Price of Sweet Crude Oil Where to set the Price of Sweet Crude Oil(0)

How the Price of Sweet Crude Oil is Determined 

You may want to know how oil prices are determined.  Let me give you the answer…

Commodity traders are basically accountable for the price of oil by making bids on oil futures contracts. Such contracts are agreements to sell or buy oil on a particular date later on the agreed price. They are implemented on the commodity exchange floor by registered traders of the Commodities Futures Trading Commission. Trading in commodities has been going on for over a hundred years but since the 1920s it is being regulated by CFTC.

Commodities traders are divided into two groups. Representatives of companies actually using oil, buy it for delivery at the fixed price on a future date. This helps them make financial plans as they know the oil price therefore reducing risk by hedging. There are other traders who are speculators and their only aim is to earn money from fluctuation in oil price.

  Factors Considered by Traders to Determine Oil Prices

There are several factors that commodities traders consider when the develop bids for determining oil prices:

  • Existing supply related to output, in particular the OPEC set production quota. When traders expect decline in supply, they bid for higher price and if they think that it will increase they pay the same and the price falls.
  • Oil reserves that is present in U.S. refineries and the storage in the Strategic Petroleum Reserves. It is easy to access these reserves and can increase oil supply when prices go very high. Saudi Arabia has a huge reserve capacity. When they are ready to tap their reserves, traders let the price of oil to fall.
  • Oil demand predominantly from the U.S. plays a key role. Energy Information Agency provides the estimates every month and the demand typically goes up during the summer being the driving holiday season. Travel forecasts from AAA are used to establish potential use of gasoline to forecast demand in summer and weather forecasts are used in winter for likely home heating use of oil.

 Price of Oil: Effect of World Crises  

Certainly, likely crises in oil-producing countries can considerably increase oil prices. This happens as traders expect limited supply due to the calamity. This was seen in 2012 January following inspectors finding additional proof that Iran’s has increased capability of making nuclear weapons. European Union and the U.S. brought about financial sanctions, which spiralled into Iran’s threat to shut the Straits of Hormuz. The U.S. reacted with the assurance to reopen the Strait even by use of military force if required. Another concern was the likelihood of an Israeli strike.

This resulted in the oil prices from November through January moving to about $95-$100 a barrel. Oil went over $100 a barrel in mid-February and continued there. Gas prices also increased to $3.50 per gallon. It was forecast that gas would remain at $4.00 or more a gallon during the summer driving season.

There is an increase in oil price due to unrest in the world seen in 2011. Investors became concerned about unrest in Tunisia, Libya and Egypt 2011 March and it became famous as ‘Arab Spring’. Oil prices reached over $100 per barrel in beginning of March and went up in late April to $113 a barrel.

The Arab Spring revolt was active all along summer, resulting in the overturn of governments. Initially commodities traders were concerned about the disruption in oil supply due to Arab Spring, but that did not happen and oil price by mid-June got back to less than $100 per barrel.

There was an increase in price of oil by $10 a barrel when there was a threat of war between Israel-Lebanon with Iran. Oil increased from its expected $70 a barrel in May to a record high of $77 per barrel in end July.

 Oil Prices: Effect of Disasters  

There can be a rise in oil prices due to man-made or natural disasters if they are serious enough. Oil prices increased by $3 a barrel during Hurricane Katrina and the cost of gas in 2005 went up to $5 a gallon. 19% of the oil production in the country was affected by Katrina. It came just after Hurricane Rita and they together destroyed 113 gas platforms and offshore oil as well as damaged 457 gas and oil pipelines. Mississippi River flooding during 2011 May, resulted in the gas prices to reach $3.98 a gallon. There was a concern among traders that oil refineries would be damaged due to flooding.

In contrast, there was no increase in the price of oil due to the Exxon-Valdez oil spill.  A key reason behind it was that the price of oil in 1989 was just about $20 a barrel and the spill included just 250,000 barrels. This had a shattering effect on the coastline of Alaska, but did not really upset world oil supply.

Over 18 times the oil was seen in the BP oil spill as compared to Exxon Valdez, but the gas and oil hardly moved due to it. This was because global demand for oil was low during the time with people slowly recovering from the recession and financial crisis of 2008. Another reason was that even after 174 million gallons of oil spill; it happened over an extended period and was not a very big percent of total oil needed by the U.S. It was just about 9 days of oil for the U.S. that in 2010 used 6.99 billion barrels of oil as per the Energy Information Administration U.S. This would mean just a little more than 19 million barrels a day.

How to make money trading Currencies on Forex Market How to make money trading Currencies on Forex Market(0)

How to Profit From Trading on the Forex Currency Market 

Among the most noteworthy events in the Forex currency market history is the formation of the gold standard monetary system in 1875. Each country attached certain amount of its currency to an ounce of gold.  The changing gold price between two currencies was the foremost in history as the method of standardizing currency exchange.

With the World War I there was a breakdown of the gold standard as the key European powers did not have adequate gold to exchange for the amount of currency being printed by the governments during the period for completing big military projects. Countries used gold standard between the wars, but it was dropped by most countries when World War II started. On the other hand gold never lost its place as the crucial form of valuing money.

Bretton Woods System was executed in 1944 which resulted in the formation of fixed exchange rates and it led to replacing gold standard with the U.S. dollar as the chief reserve currency. This also suggested that the only currency to be backed by gold will be the U.S. dollar. U.S. declared in 1971 that it would not exchange gold for U.S. dollars anymore which were kept in foreign reserves which marked the end of the Bretton Woods System.

The breaking down of the Bretton Woods System ultimately in 1976 resulted in the worldwide acceptance of floating rates for foreign exchange. This can be said to be the “birth” of the present foreign currency exchange. It started trading electronically only from the mid 1990s.

How Business can use Forex Market

Forex trading entails a transaction in which one party or person buys certain amount of a currency by paying the amount in different currency. The Forex market is an international decentralized financial market for currency exchange. There are a number of financial hubs around the world for trading a wide range of different currencies. They work around the clock except for weekends. The foreign exchange market plays a key role in determining the value of the country’s currency in comparison to another.

The key reason the existence of Forex market is to assist investment and international trade by allowing businesses to convert currencies. To give an example, a business from the U.S. can buy Japanese goods and pay in their currency, Yen, even with the business operating in US dollars and being based in America. The Forex market is also a medium for speculation which adds liquidity to the market and makes rates of exchange less impulsive. Forex market facilitates “carry-trade” where investors can purchase high rated currencies against low rated ones and profit from the interest rate.

Advantages of Trading Currencies in the Forex Market

Some of the many benefits of trading the Forex market include:

  • You can trade from anywhere with just a computer and an internet connection.
  • Huge trading volume leads to intense liquidity which makes it simpler to enter and exit at the price you want.
  • It offers flexible trading hours with 24 hours of continuous operation 5 and half days in a week.
  • Greater control to improve profit margins comparative to the size of the account as compared to other markets.
  • Lesser variables to think about as compared to commodity trading or stock.
  • There is no intrinsic market prejudice such as bullish bias stocks, which offers better chance to earn from the instability in falling or rising market.
  • Easy to access and start-up costs are low.

Forex markets are considered to be the market nearest to being “perfect competition” market with the advantages listed above and some other reasons. As per the Bank for International Settlements, the daily turnover in international foreign exchange markets on an average was estimated to be $3.98 trillion in 2010 April  which was about 20% higher than the $3.21 trillion average  recorded in 2007 April.

Who Trades Forex?

  • Big banks, central banks and some financial institutions.
  • Government
  • Brokers/ currency speculators / retail traders
  • Institutional investors
  • Corporations working internationally
  • Tourists/ Travellers

Forex Currencies Most Highly Traded

Mentioned below are the popularly traded currencies by % of daily share in April 2010:

  • U S dollar = 41.9%
  • Japanese yen = 12.0%
  • Euro = 29.1%
  • New Zealand = 1.6%
  • Australian dollar = 7.6%
  • Pound Sterling = 12.9%
  • Swiss franc = 6.4%
  • Hong Kong dollar = 2.4%
  • Canadian dollar = 5.3%
  • Swedish Krona =2.2%

How are Forex Rates Determined?

Economic aspects: They typically include governments, banks or other agency’s economic policies and the monetary situation as assessed by economic reports and other fiscal indicators.

Political Situation: Events and political conditions in the national, international or and regional space may have a key effect on the Forex currency markets.

Market Psychology: The way participants in the market think has an influence on the foreign exchange market in many ways. Eventually all the monetary variables are articulated through trader psychology or the human brain.

Trading Algorithms: Algorithmic trading has become a key player on the rates of Forex with the growing popularity of electronic trading based on algorithms like robot trading or computers.

Price of Bonds Yearly Review Price of Bonds Yearly Review(0)

Global Bonds Price Overview of 2011

Even though most investors are aware of the advantages of possessing exchange-traded funds, individual stocks and global equity funds, global bonds have remained reasonably ambiguous. Russell Investments Canada research offers very good reasons to look at this inequity in the portfolio.

To begin with there is a shortage of diversification in the bond market in Canada, which is similar to the stock market. S&P/TSX composite index is dominated by resource stocks and government bonds are a part of the DEX Universe Bond Index, yardstick for bonds in Canada.

In fact more than 73 % of bond issued in Canada are by the government, which includes federal government, municipalities, provinces and government agencies according to Bilal Naqvi senior research analyst, Russell. Perhaps, this has made bond market in Canada very conservative.

Typically government bonds, being ultimate in security, pay lower rates of interest as compared to corporate bonds. This results in a lower yielding bond market for investors than anywhere else in the world. As an example consider United States, report from Mr. Naqvi says that government bonds make up for 41 % of the bond market there. In the bond market globally, debts issued by the government account for 60 %.

It is not just that the corporate bond market in Canada is small, but it is also offers 52% weight to the financial sector. It is best not to overrate the safety of high weighting financial companies. It can be seen from the Russell report how a few bond fund managers in Canada suffered in their returns due to the downgrade of Manulife Financial bonds during the financial crisis.

Stock market of Canada accounts for almost 5% of all global equities. The heavy weighting resource stocks have assisted in propelling the stock market in Canada in the last few years. Strong financial foundation of the country has pulled cash into the bond market.

It was noticed by Mr. Naqvi that Canadian company bonds trade at higher rates as compared to similar global companies with the identical credit ratings. Yields and prices move in opposite direction, so is not really good news for investors who require income generating bonds.

Canadian Bond Market Prices

This year the Canadian stock market has underperformed compared to other global markets due to weakness in resource stocks. Russell Canada’s fixed-income portfolio manager Greg Nott feels that the bond market could be in line to fall behind. He is expecting that the Bank of Canada will get more aggressive as compared to central banks like the U.S. Federal Reserve Board, in increasing the rate of interest in the coming months.

Bond market of Canada is very safe and that is why it has done well, but is it more secure compared to world’s other bond markets. The report from Mr. Naqvi states that the market in Canada is not really at an advantage for its credit quality.

A broad view on the same- Canada benchmark for the DEX Universe Bond Index has a real triple-A credit rating and is 52% weighted to bonds on the other hand an equivalent U.S. index is 78% with triple-A bonds. Meanwhile, the bond market globally weighting to triple-A bonds is same as Canada.

When considering default risk, the report suggests that Canada is at the same level as other parts of the world including the United States. No doubt some European countries working at managing their debt loads have to be excused.

Mr. Nott segregates institutional bond fund managers in two sections one who develop portfolios comparable to the DEX universe index and others who venture beyond Canada-only benchmark. Typically in the other group 0 to 40 % of bond portfolio is invested out of Canada. High-yield and emerging-markets bonds can be a part of that mix.

United States Bond Market

Mr. Nott gives a couple of advice for investors looking for global bonds in their portfolio, one to have a fund approach than to purchase individual bonds. According to him it can get tough for advisor or an investor access few of the market segments globally and it is recommended to have a fund solution. This will aid you get access as well as diversification.

Another advice from Nott is to select funds that employ currency hedging; it can be a slightly controversial position. After a rally for many years, some feel that there can be a continuing downside to the Canadian dollar than upside. This is useful for an un-hedged technique and a falling dollar can add to increase in assets in foreign currencies.

According to Mr. Nott global exposure can perhaps add a percentage point to the bond portfolio profits. On the other hand volatility due to foreign currency exposure can result in the going up or down of the fund value easily by 3 to 5 or even 10 % points.

It is good to note that global bond funds have been the strongest performers even during 2008 among all fund categories. This was because investors around the world created the security of the government bonds as well as due to fall in the Canadian dollar. The average profit on global bond fund in 2008 was 19.1% while an average Canadian bond fund earned 2.8 per cent.

Canadians are recognised for investing at home and this preference is especially seen in bonds as compared to stocks. Canada’s Investment Funds Institute Data suggests that global bond funds signify around 18 % of total bond funds assets while international and global equity funds account for just a little above 1/3rd of equity fund assets.

It has been noticed by Mr. Nott that the institutional investors are lately increasing their global bonds holdings.

Strategies to Trading Binary Options Strategies to Trading Binary Options(0)

Strategy Guide for Binary Option Trading 

The Toronto stock market managed a meek advance on Tuesday morning with the mixed U.S. economic data and the Bank of Montreal earnings report which beat expectations.

Composite index of S&P/TSX went up by 12.86 points to reach 12,713.24 and the TSX Venture Exchange was at 1,682.71 after gaining 3.21 points.

Quarterly reporting season of big banks’ kicked off with Bank of Montreal presenting its first-quarter profits which went up by 34% to $1.1-billion or $1.63 per share. When adjusted, earnings were $1.42 a share which beat the analyst estimate of six cents. They increased their revenue from $3.47-billion to $4.12-billion and the shares climbed 53 cents to $58.54.

The bank has gained from its key U.S. expansion, by acquiring Marshall & Ilsley Corp a Milwaukee-based enterprise recently. According to analysts such deals will continue in boosting results.

Sun Life Global Investments, chief investment officer, Sadiq Adatia feels that the banks acquisitions in the U.S. will show the way forward. He also added that he thinks that was the vision of the bank when they first began buying these assets. Even with the present economic U.S. slowdown the country will eventually will be back on track which aid in diversifying some assets that they are acquiring from the Canadian sources.

Report from Royal Bank, TD Bank and National Bank is expected on Thursday 

SNC-Lavalin Group Inc, the engineering group was a big early decliner. They announced their requirement to investigate the undocumented payment of $35-million booked in the previous year. The company is slashing its profit forecast for 2011 by 18 per cent and postponing the announcement of its full-year and fourth-quarter financial results. Its shares fell by $11 or by 22.74 % to $37.37.

 Hedging The Canadian Dollar

Commodity-sensitive Canadian dollar went up by 0.32 to 100.4 U.S. cents with the rising prices of gold and copper.

There was advance in the U.S. markets even as the U.S. Commerce Department announced that orders for the durable goods or items that typically last for a minimum three years fell by 4 % previous month. It is much more than what the economist were hoping for at 1.1 per cent. Core capital goods, which are seen as an excellent, gauge for business investment strategy, dropped by 4.5 per cent, the biggest in one year. There was an all time high demand for these goods as companies moved in to benefit from the expiring tax breaks on procurement of capital goods.

Balancing out the negative reading was other data which showed that in February U.S. consumer confidence rose considerably to the highest level in a year.

 Consumer Confidence Impact on Canadian Markets

Consumer confidence index of the Conference Board is at 70.8, higher than the revised 61.5 projected in January. This happened due to the improving evaluation of the job market by consumers. Reading by analysts was expected to be 63.

Adatia included that since mid-2011 he has been bullish on the U.S. as he has been noticing the signs. Value of housing has fairly stabilized and the consumer is feeling more confident with the unemployment numbers decreasing. Things are not that bad.

There was a gain of 28.08 points in the Dow Jones industrial average to 13,009.59 and the NASDAQ composite index was up by 21.04 points to 2,987.2. The S&P 500 index also went up 4.75 points to reach 1,372.34.

 Binary Options Trading Commodities

Gold sector increased 0.55 % with the increase of U.S. $10.50 to U.S. $1,785.40 in the April contract. Goldcorp Inc. gained 53 cents to reach U.S. $48.88.

Oil prices fell for the second day and the TSX energy sector remained flat. The Nymex April crude contract was down 29 cents a barrel to US $108.27. Cenovus Energy was at $38.55 by losing 21 cents.

This month there was a 13 per cent hike in Crude mainly over concerns about nuclear program of Iran and disruption of supply from the Mideast. This sudden higher crude price has brought in concerns about how this could affect economic recovery in the U.S. It will stress corporate earnings and exacerbate the European recession.

There was a 0.55 % dip in the base metals sector even with copper prices continuing to gush with the March contract. It was up by 3 %  to U.S. $3.91 a pound. With signs of recovering U.S. economic growth the prices for the metal have increased by 3.5 %. There is hope that China will continue relaxing the lending values to support growth. They are the largest consumers of metals in the world.

Thompson Creek Metals Co. Inc shares fell by 12.7% or $1.10 to $7.56 with its report of a marginal quarterly profit of U.S. $800,000. There was a fall in revenue to U.S. $116.7-million   from $156.8, showcasing a steep drop in molybdenum price. In other sectors First Quantum Minerals gained 23% to U.S. $22.95.

There is some other earnings news including Ritchie Bros. Auctioneers Inc. the biggest auctioneers of industrial equipment in the world, reporting for 2011 a net profit rise to U.S. $76.6-million or 72 cents per share. They had net earnings of 61 cents a share or $65.7-million in 2010. They said that their profits for fourth quarter became more than double to $26.8-million.

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