Financial Update For April 8, 2010

Average house prices up at least 10 per cent in major Canadian markets

• TSX -45.81 Stock markets around the world fell as worries about Greece's fiscal woes brewed. The interest rate gap, or spread, between Greek 10-year government bonds and the German equivalent, considered a benchmark of stability, spiralled to record highs. In wildly oscillating morning trading, spreads were jumping between 4.01 and 4.30 percentage points - the highest level since Greece joined the euro. The higher interest rates demanded by bond investors are potential poison for the Greek budget; unless they fall, the government will pay a premium to borrow and face a vicious cycle where higher borrowing costs fuel fresh default fears.
• DOW -72.47
• Dollar -.39c to 99.49cUS pushed through parity for a second day, nearing a 21-month high, but then fell back sharply as oil prices fell and risk appetite dried up.
• Oil -$.96 to $85.88US per barrel.
• Gold +$17.00 to $1,152.40 USD per ounce


(REUTERS)Canadian building permits data for February came in weaker than the market had forecast, also pressuring the currency. Building permits, a barometer of future construction activity, slid 0.5 percent in the month to C$5.7 billion versus market expectations of a 2 percent gain.
The next major Canadian economic report will be employment data for March, due for release on Friday. The median forecast of 19 analysts is for a net gain of 25,000 jobs, slightly more than the 20,900 jobs added in February. None of the analysts expected job losses, with forecasts for creation ranging from 5,000 to 45,000

Average house prices up at least 10 per cent in major Canadian markets: LePage
By The Canadian Press
TORONTO - Prices for all key housing types were up more than 10 per cent across Canada in the first quarter, although some markets were hotter than others.
That's according to a national real-estate survey by Royal LePage, which says the Canadian housing market will likely become more moderate as 2010 unfolds.
The survey found that, on a national basis, the average price of a detached bungalow in Canada rose to just over $329,000 in the first three months of this year - up 11 per cent from the first quarter of 2009.
Standard two-storey homes rose 10.3 per cent, to about $365,000, while condominium units increased by 10.9 per cent to just under $229,000.
Royal LePage, which is a national real-estate sales organization, says the national numbers don't paint the whole picture, however.
It says some local markets, such as Vancouver and Toronto, may be overheated while most others have shown more moderate growth.