The first full trading week of the month begins on Monday, April 6th with investors of resource issues feeling for the first time in months that perhaps the worst was over for their sector and that maybe better times lay ahead.
The markets got a good lift when Federal Reserve Bank of New York president William C. Dudley commented that the pace of U.S. interest rate increases will likely be shallow once the Fed starts to tighten.
Rosstat reported that while Russia’s consumer price inflation eased 1.0% to 1.2% in March, it is still 16.9% ahead of March 2014.
Tesla Motors (TSLA-Q) shares’ rose by almost 7% to US$203.71 when the high end electric car builder reported they beat their own estimate by delivering 10,030 of their electric vehicles in the first quarter, and some 55% over the same quarter just one year ago.
The Canadian Government announced on Tuesday, April 7th that it had made a deal with Goldman Sachs (GS-N) to divest itself of the 73.4-million shares of General Motors (GM-N) for an estimated $3.3-billion. The government bought the position to help keep the automotive company alive in the Great Recession of 2009.
Ballard Power (BLD-T) shares’ gained over 8% to $2.91 when the company announced that China based rail locomotive manufacturer CSR Qingdao Sifang would use Ballard’s fuel cell technology on a trial basis on one of their tram systems.
FedEx (FDX-N) agreed to buy Dutch package delivery firm TNT Express for some US$4.8-billion in cash.
Technical analysts David Tippin & Ron Meisels – “We expect that the recent uncertain market action will resolve itself with a spring rally. Toronto, which has already corrected healthily, is positioned to be an upside leader. The major bullish up-trend remains our friend until the price action proves otherwise”. (For a copy of the complete report please contact firstname.lastname@example.org).
Mergers and acquisitions (M&A) activity picked up in the oil patch on Wednesday, April 8th when Royal Dutch Shell (RDS-N) announced they were buying British gas producer BG Group in a cash & stock deal of some US$69.7-billion.
They rob banks and jewelry stores and now….now wait for it….gold mines! As McEwen Mining (MUX-T) reported armed robbers took 7,000 ounces of gold contained in 900kgs of concentrate from their El Gallo gold mine in Mexico.
Alcoa Inc. (AA-N) starts off the first quarter earnings season on Thursday, April 9th by turning a 1st-quarter profit as opposed to a loss in the same quarter one year ago.
Meridian, Ontario’s largest credit union lowers the Canadian mortgage bar to a new record low by offering an 18-month fixed term mortgage of just….now wait for it…..1.49%.
Cara Industries (CAO-T), one of Canada’s largest restaurant conglomerates, with outlets such as Bread Garden, goes public on Friday, April 10th to a positive response as its share price soared by almost 43% to $32.83.
Statistics Canada reported on that the Canadian economy created a better than expected 28,700 new jobs in March.
General Electric (GE-N) shares rose by 10.8% to US$28.51 when one of America’s largest industrial conglomerates announced it would spin off most of its US$26.4-billion of financial assets.
Resource based markets finally got some traction as the TSX Venture Exchange rose to a 1-month high of 699, while the TSX Composite Index established a new 7-month high of 15,388. With commodities, crude oil rose to a new 7-week high of US$53.98-a-barrel while natural gas fell to a new 10-month low of US$2.51 per million btus.
Great Canadian Gaming (GC-T) at $24.81, New Flyer Industries (NFI-T) at $14.77 and Ten Peaks Coffee Co. (TPK-T) all established new TSX 52-week trading highs while Connacher Oil & Gas (CLL-T) at $0.02, Lundin Gold (LUG-T) at $3.55 and Western Forest Products (WEF-T) at $1.78 all touched new 52-week trading lows.
For the Week – The Dow Industrials gained 1.60% to 18,058, with the S&P 500 Index up by 1.69% to 2,102 and the NASDAQ Exchange up by 2.19% to 4,996. North of the border, the TSX Composite Index improved by 2.40% to 15,388 and the TSX Venture Exchange gained 2.34% to 699.
Gold bullion gained 0.58% to US$1,208, with copper rising by 0.37% to US$2.74, and crude oil up by 5.27% to US$51.73, while natural gas fell by 7.38% to US$2.51.Overall, the CRB Spot Commodities Index improved by 0.48% to 416.
The Canadian dollar lost 0.80% against the U.S. dollar to end the week at US$0.7945.
And the closely watched CBOE Volatility Index or VIX dropped by 2.16-points to finish the week a a much calmer level of 12.51.
And Finally – A recent BMO Financial Group survey found that only 26% of respondents had any sort of savings plan, while 40% felt they were not saving enough and 20% said that they had not saved any money in 2014.
And Finally, Finally – The Week is taking a week off to travel to southern Saskatchewan to visit family and friends. Should all go as planned this publication will once again be published on or about Monday, April 27th.
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