C$ strengthens to 10-day high as oil recovers

New Canadian five and 10 dollar bills, made of polymer, are displayed with the previously released 20, 50 and 100 dollar notes in OttawaBy Fergal Smith TORONTO (Reuters) - The Canadian dollar strengthened to a 10-day high against its U.S. counterpart on Friday as oil rose and a new property transfer tax in Vancouver loomed, while data showing the U.S. economy grew far less than expected offset weak domestic data. U.S. crude oil futures settled up 46 cents at $41.60 a barrel. "Flows due to the impending Vancouver real estate tax" added to support for the Canadian dollar, said Adam Button, currency analyst at ForexLive.


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Commerzbank touts ‘robust’ capital in EU stress test

Germany's Commerzbank AG on Friday said an EU test of banks' financial health showed its capital is robust, after it posted a weaker reading than most of its European peers under an "adverse" financial stress scenario. Germany's second biggest bank showed a capital strength measure that was eighth from the bottom among 51 European lenders tested against a theoretical economic shock spanning three years to see how much their core capital would be depleted, according to data from the European Banking Authority published on Friday. Commerzbank's core equity Tier 1 ratio (CET1) was 7.4 percent in this adverse scenario, the data showed.
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Italy’s BMPS worst performer in EU bank stress tests

BMPS, the world's oldest lender, would see a 14.23 percent plunge in its core capital ratio -- a key measure of financial stabilityItaly's Banca Monte dei Paschi di Siena came a distant last in EU bank stress test results released on Friday that showed the sector as a whole was broadly resilient. BMPS would suffer a 14.23 percent plunge in its core capital ratio -- a measure of stability -- by 2018 under the European Banking Authority's economic shock scenario. "The EBA's 2016 stress test shows the benefits of the capital strengthening done so far are reflected in the resilience of the EU banking sector to a severe shock," said Andrea Enria, chair of the London-based EBA.


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Italy’s BMPS worst performer in EU banking stress tests

BMPS, the world's oldest lender, would see a 14.23 percent plunge in its core capital ratio -- a key measure of financial stabilityItaly's Banca Monte dei Paschi di Siena came a distant last in EU bank stress test results released on Friday that showed the sector as a whole was broadly resilient. BMPS would suffer a 14.23 percent plunge in its core capital ratio -- a key measure of a bank's financial stability -- by 2018 under an economic shock scenario being modelled by the European Banking Authority. "The EBA's 2016 stress test shows the benefits of the capital strengthening done so far are reflected in the resilience of the EU banking sector to a severe shock," said Andrea Enria, chair of the London-based watchdog.


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Mortgage Rates Down to 2-Week Lows After GDP

Posted To: Mortgage Rate Watch

Mortgage rates enjoyed another strong day, falling to the best levels in exactly 2 weeks. Rates were actually set to move higher early this morning, but a much weaker-than-expected reading on Q2 GDP helped drive demand for bonds. Better buying pushes bond prices higher and rates lower. The strength in bond markets gave lenders the peace of mind needed in order to offer even better terms than yesterday. The most prevalent conventional 30yr fixed rate is quickly returning to 3.375% on top tier scenarios. Next week brings important economic data, including the big jobs report on Friday. The overall tone of that data should help determine whether rates will continue building on the past 2 days of positive momentum. The conservative approach would be to lock in the gains with rates at 2-week lows...(read more)

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Posted in bond markets, Interest Rates, MORTGAGE NEWS, mortgage rates | Leave a comment

Mortgage Rates Down to 2-Week Lows After GDP

Posted To: Mortgage Rate Watch

Mortgage rates enjoyed another strong day, falling to the best levels in exactly 2 weeks. Rates were actually set to move higher early this morning, but a much weaker-than-expected reading on Q2 GDP helped drive demand for bonds. Better buying pushes bond prices higher and rates lower. The strength in bond markets gave lenders the peace of mind needed in order to offer even better terms than yesterday. The most prevalent conventional 30yr fixed rate is quickly returning to 3.375% on top tier scenarios. Next week brings important economic data, including the big jobs report on Friday. The overall tone of that data should help determine whether rates will continue building on the past 2 days of positive momentum. The conservative approach would be to lock in the gains with rates at 2-week lows...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted in bond markets, Interest Rates, MORTGAGE NEWS, mortgage rates | Leave a comment