Behind the Headlines January, 2006

Article Excerpt

The S&P/TSX composite index closed at all-time high of 11,441.58 on the first day of trading in 2006. The index rose 169.32 points, or 1.5%. The previous record high of 11,388.80 was reached in September, 2000. The 2000 high came on the strength of peaking technology and Internet-related stocks, including Nortel shares trading at $122. The latest record high was largely due to higher prices for energy, metals, golds and financial stocks. The U.S. S&P 500 index rose 20.51 points, or 1.6%, on the first day of trading in 2006, to 1268.80. That’s still 20% below its 2000 high. The rise in the S&P 500 index came after the release of the minutes of the U.S. Federal Reserve’s December 13, 2005 open-market committee meeting. The minutes hinted that further interest rate hikes would be limited. Our view now is that the latest rise could carry on till late April, say. After that, we’d look for stock prices to turn sluggish or head downward over the…

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