Tuesday, June 13, 2006, 4:15 PM ET (Thomson Financial Corporate
Services): Canada's benchmark equity index had a triple-digit drop, the
seventh- consecutive losing session, as commodity prices weighed on the
energy, metal and mining sectors. The energy sector fell alongside a steep
slide in crude oil prices, as Tropical Storm Alberto failed to disrupt oil
and gas production in the Gulf of Mexico so far.
* The S&P/TSX Stock Exchange Composite Index plunged 293.24 points, or 2.62%.
* On the U.S. economic front, May U.S. producer prices increased 0.2%
as energy prices moderated, but core prices were higher on signs that
inflationary pressures were growing. The core PPI, which excludes food and
energy prices, rose 0.3%. The PPI was slightly below the expected 0.3%, and
core prices were a bit above the expected 0.2%. Separately, retail sales
rose 0.1% in May, the Commerce Department said, which was in line with
forecasts. Excluding auto sales, retail sales rose 0.5%.
* Commodities continued to fall, with crude oil futures for July
delivery dropping US$1.80 to US$68.56 a barrel on the New York Mercantile
Exchange. Gold fell below US$600 an ounce for the first time in almost two
months, its biggest drop in 15 years, alongside strength in the U.S.
dollar.
* Gold miner Crystallex International Corp. fell on concern about its
Las Cristinas gold mining project in Venezuela, which it says is
proceeding, despite reports of political friction. The company's shares had
already fallen sharply on reports that Venezuelan President Hugo Chavez may
seize control of mines that have not yet begun production under proposed
legislative changes.
* In financials, Bank of Nova Scotia will acquire the parent firm of
Costa Rica's largest private bank, Corporacion Interfin, for C$330 million
and merge it with its existing subsidiary in the country, resulting in a
13% loan market share. Scotiabank's combined Costa Rican operation will
have about C$1.8 billion in assets and C$1.1 billion in deposits.
-- Michael.O'Brien@contractor.Thomson.com; Thomson Financial Corporate
Services
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
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SOURCE Thomson Financial Corporate Group
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