rI midday market report, May 10, 2012
Markets test subtle rebound, gold, copper prices edge higher
The S&P TSX composite index was up in intraday trading 69.72 points or 0.6%, with the TSX Venture exchange pushing up over 1% to 1,359.55, a hike of 13.86.
U.S. indexes also advanced with the Dow Jones industrial average up 66.22 points to 12,901.28. The Nasdaq composite index rose 9.55 points to 2,944.26 while the S&P 500 index was ahead 10.49 points at 1,365.07.
The US dollar is seeing some of the week’s earlier buoyancy deflate after uncertainty over Greece, where elections have not resulted in a clear outcome, and France where elections veered to the left, led investors to seek the relative security of the USD.
However, doubt pulled down the Canadian dollar, which retreated from the best levels of the session, up 0.03 of a cent at 99.94 cents US.
A day earlier, the loonie closed below parity with the U.S. dollar Wednesday for the first time in two months, suggesting that traders were seeking to avoid riskier assets such as commodities and resource-based currencies such as the loonie amid renewed eurozone turmoil.
As fears of the turmoil abated, gold and commodities appear to be returning to the upside.
The Dow Jones-UBS Commodity Index was up 0.14 points or 0.11%, to 136.05 by early afternoon. This index tracks the overall performance of the commodity futures market based on settlement prices for 19 physical commodities, including aluminum, nickel and zinc.
At 1:10 EST, gold was up $1.40 to 1,595.60, copper up $0.03 to $3.69 and oil was up $0.26 to to 97.04.