Financial Update

· TSX +96.97 (Reuters)A late-day surge pulled the main index higher as gains in the wider market offset a drop by energy shares, which were hit by another big drop in oil prices. **The day's rally pulled the benchmark away from official correction territory, but it remained down 8.8 percent from the all-time high it reached in early June. A "correction" is generally defined as a 10 percent retreat from peak levels.
· Dow +152.25 boosted by the drop in oil prices, which eased worries about consumer and business spending.
· Dollar -.02c to $98.13US
· Oil -$5.33 to $136.04US per barrel. The decline in crude -which has fallen nearly $10 this week - helped ease anxiety over rising inflation and improved hopes the Bank of Canada won't need to raise interest rates next week, said Gavin Graham, chief investment officer at Guardian Group of Funds.
· Gold -$5.40US to $921.90US per ounce

Housing starts slow in June

HEATHER SCOFFIELD Globe and Mail Update
OTTAWA — Housing starts in June slowed to an annualized 217,800 – a drop from May but largely in line with economists' expectations.
The decline was seen in all regions of Canada, except Ontario. Activity in both single homes and condos fell.

“Despite the decrease in June, total housing starts remain at high levels.” said Bob Dugan, the chief economist at Canada Mortgage and Housing Corp. “This is mostly due to the multiple segment which has been continuously above the 100,000 unit threshold since the beginning of the year.”