AUJOURD'HUI SUR LES MARCHÉS (anglais seulement)

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This is Market Watch for Tuesday, September 7, 2010

Welcome to Market Watch for Union Securities on September 7th, 2010, I'm AJ Tooley. Stock indexes have backed off after the highest levels in nearly a month were forged on Friday, while commodities are mixed but mostly weaker this morning. Please stay tuned as I’ll be back with the details momentarily.

Back to market watch.

A European Union official’s comment that the EU is not all clear in terms of financial stability and a Wall Street Journal report on the bank stress tests having been less stringent than previously thought has renewed concerns about European banking. Apparently many European banks hold more sovereign debt than the tests had originally indicated. In France, there are protests on retirement age reform. In terms of global economic sentiment, the uncertainty in Europe seems to be outweighing the positive impact of last Friday’s better than expected US jobs report. President Obama’s plan to extend small business tax credits and his announcement of a $50B infrastructure plan are also being overshadowed. Stocks have opened the shortened holiday week lower. We have the TSX down 50 and the DJIA down about 70.

The October crude oil future is down about $1.25, now at $73.35/barrel.

The Loonie is down 30 points at 9590 as the USD rebounds against most of the major currencies. Long term US treasuries have recovered almost all of Friday’s drop as the weakness in the stock market gets investors excited about the safety of bonds.

Gold is up $7 at $1258/oz.

Taking a look at the agricultural markets, a private estimate of lower corn yields may have been the catalyst for a big move higher in the grains on Friday. Soybean prices went back up near the yearly highs while wheat traded at the highest price since early August and corn broke out to a new high. The USDA will release the official report on Friday. Prices set back a bit overnight but have risen steadily in this morning’s trade. We now have Nov soybeans up 3 at 1038, Dec corn flat at 436, Dec oats up 6 at 301 and Dec Chicago wheat down 8 at 733 ¼.

Canola is firm this morning as cool, wet weather across the prairies provides support along with a weaker CDN Dollar. Environment Canada has forecasted a risk of frost in the Winnipeg area for tonight. Stats Canada will issue the latest grains stocks report tomorrow. Last trade in the Nov future was at $462.30/tonne.

That wraps up today's Market Watch. For Union Securities in Winnipeg, I'm AJ Tooley. If you have any questions, please give us a call here at 1-866-752-0367 or visit us online at www.unionsecuritiescommodityfutures.com. Thanks for listening.

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Union Securities Ltée est membre du Fonds canadien de protection des épargnants, dont le mandat consiste à protéger les investissements des clients.