Monday, June 19, 2006, 4:15 PM ET (Thomson Financial Corporate
Services): Canadian shares took a triple-digit hit today on declining gold,
energy and mining shares. Tech titan Nortel Networks also added to market
pressure, following a joint venture among its rivals. Tomorrow, the release
of Canada's Consumer Price Index will likely draw investor focus and
provide some clues on inflation levels.
* The S&P/TSX Stock Exchange Composite Index tumbled 200.37 points, or 1.79%.
* On the U.S. economic front, the National Association of Home
Builders' June index dropped four points to 42, the lowest level since
April 1995. Readings above 50 indicate good or fair conditions. The index
declined in all four regions of the nation, but still remains positive at
61 in the West after a one-point dip in June.
* In terms of local economic activity, Ottawa has eclipsed Calgary in
economic momentum, according to a new study, passing its Western
counterpart in the first quarter of the year versus last year on the power
of the high-tech industry. The Canadian Imperial Bank of Commerce released
the data in its metropolitan economic activity index.
* Turning to corporate reports, Nortel Networks Corp. fell on
consolidation in the technology industry. Nokia and Siemens are combining
their mobile network operations in a joint venture expected to generate
about US$20 billion in annual revenue and help the companies compete with
market leader Ericsson AB.
* Canada Southern Petroleum Ltd. said that it favours a takeover bid
from Canadian Oil Sands Trust over separate unsolicited bids from
Petro-Canada and Canadian Superior Energy Inc.
* Energy shares declined alongside a slide in crude oil prices.
Investors were cheered by comments this past weekend from Iran's leader
that could ease tensions regarding that country's nuclear ambitions.
-- 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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