Tuesday, June 6, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Canada's benchmark stock index fell as gold and other metal
prices declined, pressuring the mining sector. U.S. stocks were also in the
red, extending Monday's losses, on fears that the U.S. Federal Reserve will
continue to raise interest rates to stem inflationary pressures.
* The S&P/TSX composite index fell 33.35 points to 11,666.14.
* In commodities, oil, copper, zinc and gold prices all lost ground.
Oil prices dipped on signs that crude supplies remain adequate for now, but
analysts said concerns about possible oil supply disruptions will keep
prices at current levels.
* Gold futures declined on the Comex division of the Nymex, on
expectations that the Federal Reserve will continue its
interest-rate-hiking cycle.
* On the Canadian economic front, building permits tumbled more than
expected in April to their lowest level since November as both the
residential and non-residential sectors declined, Statistics Canada said.
Permits eased 10.6% to C $5 billion in the month after hitting their
second-highest level on record in March. April's permits were also 1.5%
below the average monthly level for last year as a whole.
* In corporate news, Nortel Networks Corp. released its delayed first-
quarter results, reporting a bigger loss on little changed revenue.
Nortel's loss widened to US $167 million, or US $0.04 a share, from a
restated loss of US $104 million, or US $0.02 a share, in the year-earlier
period. Nortel said it continues to expect high-single-digit growth in
revenue for 2006.
* In tech, Cognos Inc. said it delayed the release of its first-quarter
fiscal 2007 results, previously scheduled for June 21, to a date "to be
announced." The company has also delayed its annual reports amid a review
by the U.S. Securities and Exchange Commission of the business software
maker's allocation of revenue.
* Still in the sector, U.S.-based Hewlett-Packard Co. said it reached a
favorable tax settlement with the U.S. government that will cause it to
restate second-quarter profits upward by $443 million. The settlement,
reached on June 1, also prompted the company to boost its full-year
outlook.
* In other news, TSX Group Inc. and Thomson Financial have made a deal
to deliver market data and other information to financial-industry
professionals. The TSXconnect venture, announced today, will provide
TSX-listed companies with specialized financial information as Thomson
Financial becomes a content provider and sponsor at the TSX broadcast
center in Toronto's Bay Street financial district. "This will help us
attract more international companies to list on the Toronto Stock
Exchange," said TSX Group CEO Richard Nesbitt in an interview with The
Canadian Press.
* Elsewhere, the majority of investors who lost money with the Norbourg
investment company will get back a portion of their money in the coming
weeks. Trustee Ernst & Young was granted permission today by a Quebec
Superior Court to return C $32 million of C $75 million recovered last year
from Norbourg, Evolution and Perfolio funds.
--Michael.O'Brien@contractor.Thomson.com
This is Thomson Financial Corporate Services Canadian Commentary, which
is updated twice daily. The information herein is believed to be true and
accurate, we take no responsibility for inaccurate information and reserve
the right to update our reports. For more financial information at your
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SOURCE Thomson Financial Corporate Group
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