Canadian stocks, News - Tuesday, August 5, 2008 5:00 - 0 Comments

Canadian stock index holds records

Canadian stock market has begun June on the record territory. As a result of auctions the main Canadian index has added 120 points or 0.81 percent and has ended its movement at the mark of 15.064 that is also 90 points lower of the highest index level. The main reason of the rapid increase of Canadian companies’ stocks is high oil and other rough products’ price as well as stable situation in the country’s inner economics. In contrast to its Southern neighbor Canadian economics didn’t feel strong effect of the credit crisis and continues reap the fruits of its high prices for rough products and fuel.

Economical situation in America continues to show recession signs. Wise financial planning is especially important during a recession. After the very weak report concerning unemployment level, new economical data point to the combination of high prices together with the reduction in economical development. This in its turn will show more negative effect on the American consumer who is suffering from price reduction. American companies’ stocks were negatively influenced by inflation, deceleration of the industrial sector and big problems in building complex. Index of 30 largest companies Dow Jones has fallen on 108 points (0.89%) to the mark of 12.160. Wider index S&P has reduced on 0.7% as well as “highly technological” Nasdaq.

The main debates concerning the future of the largest economical country are now around future actions of the Central Bank. To fight with inflation the Bank has to increase the main percent rate that in its turn won’t stimulate further economical growth.