Wednesday, June 14, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Canadian stocks managed to post gains today, snapping a string
of losses on rising gold and oil prices. In the U.S., stocks also recovered
somewhat, despite consumer price data that showed inflationary pressures on
the rise.
* The S&P/TSX Stock Exchange Composite Index rebounded 56.34 points, or
0.52%.
* Commodities helped bolster the broader market, as prices improved.
Crude oil prices advanced, partly due to data released by the U.S. Energy
Department indicating tightening supplies. Crude stocks declined by 900,000
barrels last week to 345.7 million barrels. Still, gasoline inventories
increased, as did distillate stocks. Separately, the yellow metal ticked
higher, following overnight weakness.
* On the U.S. economic front, consumer inflation rose on surging
gasoline prices, and the reverberations are beginning to cause more
widespread inflation woes. The consumer price index posted a 0.4% increase
in May after an even bigger 0.6% rise in April. Excluding energy and food,
core inflation rose by a larger-than-expected 0.3%.
* Turning to Canada, housing starts fell 0.5% to an annual rate of
216,800 in May from an adjusted 217,900 in April. According to Thomson IFR
Bonddata, economists were looking for 22,000 starts last month, on average.
* In mining, Xstrata PLC said it gained U.S. regulatory approval for
its hostile bid for Falconbridge Ltd., bringing the Swiss company one step
closer to swallowing the Canadian miner.
* Elsewhere, Alimentation Couche Tard announced yesterday that the
company is adding 24 stores in Louisiana to its Circle K Stores Inc.
subsidiary.
* CHC Helicopter Corp. landed a five-year C$170 million contract to
supply eight Sikorsky helicopters for Petrobras operations off Brazil. CHC
stock rose on the development.
* Imperial Oil Ltd. says rising construction costs have forced it to
"pause" discussions with the federal government over its proposed Mackenzie
Valley natural-gas pipeline project. Talks are on hold until the company
can firm up estimates this fall for construction costs and timelines. The
project was most recently forecast to cost C$7.5 billion and is to be
completed shortly after the turn of the decade.
* In M&A activity, Thomson Corp.'s Thomson Financial division agreed to
acquire AFX News, a unit of Agence France-Presse. The deal is expected to
close in July.
* In the U.S., Intel Corp. stock rose following an upgrade from Goldman
Sachs.
-- 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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