Canada’s main stock index fell on Friday as weaker oil prices, caused partly by a stronger U.S. dollar, weighed on resource issues. Oil prices fell below $77 a barrel, with the U.S. dollar rising for a 2nd straight day as investors reduced their risk tolerance. The S&P/TSX composite index ended down 0.18%, with 6 of the 10 main sectors lower. The index was up 1.5% for the week and touched a 13-month high on Wednesday.

The stock market also felt some headwinds after Bank of Canada Governor Mark Carney said on Thursday evening that Canada’s economy performed worse than expected in the 3rd quarter, but was now recovering. He also cautioned that it risks further setbacks due to a strong Canadian dollar. Earlier on Thursday, Finance Minister Jim Flaherty suggested he thought the economy could have stood still in the third quarter. Flaherty vowed on Friday to resist big, new spending measures in his next budget, but said it was too early to pull stimulus away from a still shaky economy.

In the United States stocks fell for a 3rd straight day on Friday as investors took weaker-than-expected results from computer maker Dell and homebuilder D.R. Horton as a further sign that the recovery would be weak. While it appears to us that the recession is over, there are a lot of lingering signs of pain on Main Street. Unemployment is very high with lots of people out of work and this is still causing significant stress. Unease about the economy’s prospects drove investors to book some profits and be a little more defensive.

The Dow Jones industrial average fell 0.14%, the Standard & Poor’s 500 Index fell 0.32% and the Nasdaq Composite Index fell 0.50%. For the week, the Dow rose 0.5%, the S&P 500 fell 0.2% and the Nasdaq shed 1%.

This mornings stock markers are looking very strong with the U.S. dollar down, commodity prices and futures up by almost 1% (and gold hitting an all time high).

Regards,

Wilfred Vos Bcs, FMA, CIM, CFP, FCSI, DMS, CBV, MBA, CFA

SVP & Partner

www.roicapital.ca