Yesterday, after having gone through some rough patches during January, the loonie took advantage of a rebound in crude oil prices to record an excellent day. Oil continues to appreciate this morning and is currently trading above 51$ a barrel. The stabilization of oil prices is favorable to risk taking: Asian and European stock markets recorded gains while the futures market indicates an opening in positive territory on North American exchanges.
Greece's situation continues to captivate our attention as investors fear tense discussions between Germany and other eurozone countries. Despite this fear, the contagion effect is not felt in the credit market. Greece currently has to pay a 10.3% premium above German bonds for a 10-year term. Credit spreads for 10-year issues are 1.16%, 1.3% and 2.3% for Spain, Italy and Portugal respectively. We remind you that German 10-year bonds currently have a 0.31% yield.
Today, we are monitoring manufacturing orders in the United States at 9:45 am, the comments of two Fed members and the financial results of several companies including BP Plc (NYSE:BP), United Parcel Service Inc (NYSE:UPS) and Walt Disney Company (NYSE:DIS). Have a good day.
Emmanuel Tessier-Fleury
Range of the day: 1.2490-1.2585