Thursday, June 22, 2006, 4:45 PM EST (Thomson Financial Corporate
Services): Canada's benchmark index rose on a rise in the energy and
technology sectors. In the U.S., stocks fell amid renewed fears that the
Federal Reserve might have to raise rates to stem inflation at next week's
June 28-29 Federal Open Market Committee interest-rate policy meeting.
* The S&P/TSX Stock Exchange Composite Index edged up 17.38 points, or
0.16%.
* In the U.S., stocks continued to be volatile ahead of the Federal
Reserve's interest-rate meeting next week. While investors are all but
certain that the Fed will hike interest rates again, they are equally
focused on the statement on inflation and the health of the economy that
accompanies interest-rate decisions.
* Meanwhile, on the U.S. economic front, there was little new data for
investors to chew on, except a better-than-forecast weekly report on
jobless claims, which reignited concerns about rising interest rates.
Elsewhere, there was a larger-than-expected decline in the index of U.S.
leading economic indicators. The index fell 0.6%, suggesting that the
economy is likely to grow at a "slow to moderate" pace in the near term,
the Conference Board said. Economists expected a 0.4% drop in the index for
May after a 0.1% decline in April.
* Technology stocks bounded higher on the day. Research In Motion Ltd.
and Taiwan Mobile announced plans to launch RIM's BlackBerry wireless
device in Taiwan during the summer. The move comes after RIM said earlier
this month it was moving into the Japanese market. RIM stock rose on the
news.
* Energy stocks were amongst the day's top performers. Crude oil rose
back above US $71 a barrel, after the U.S. reported a smaller-than-expected
build in gasoline supplies at a time when refineries are boosting
production to meet peak fuel demand for the Fourth of July holiday.
* Meanwhile, Suncor Energy Inc. has acquired three more oil sands
permits near its Fort McMurray oil-sands operations. Financial terms were
not disclosed.
* Steelmaker Stelco Inc., which emerged from bankruptcy-court
protection earlier this year, said it would cut 15% of its work force after
settling a new four-year contract with the United Steelworkers union. The
company will cut over 700 jobs through retirements, attrition, a salaried
and hourly employee buyout plan and severance packages, Chief Executive
Rodney Mott said at the company's annual meeting.
* In mining, Inco Ltd. predicted a record second-quarter profit and
said it sees continued strong performance in the second half of the year.
The nickel miner, currently attempting to buy rival Falconbridge Ltd.,
expects to earn between US $1.70 to US $1.75 a share on an adjusted,
diluted basis in the second quarter, based on quarter-to-date commodity
prices. Shares of Inco rose on the forecast.
-- 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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