U. S. MARKETS AUG. 5-11

Major U. S. indices were up during the Aug. 5-11 trading session, on the back of a continuing drop in the oil price. The Dow Jones Industrial Average added 167 points, or 1.4%, to 11,782; the S&P 500 Index moved up 20 points, or 1.6%, to 1,305; and the NASDAQ climbed 90 points, or 1.6%, to 2,440. Precious metal indices fell heavily as the gold price continued to drop on the back of a strengthening U. S. dollar. The Amex Gold Bugs Index crashed 42 points, or 11.8%, to 314, and the Philadelphia Gold and Silver Index tumbled 10.5 points, or 7.2%, to 137.

National Bank economists point out a number of trends affecting growth, the greenback, and commodities. Stfane Marion says the growth rate in China will decelerate next year, dropping to 7.5% in 2009 from 10% this year. In the face of a global slowdown, demand for China’s industrial products will pull back because of a draw down in inventories. Also of National Bank, Yannick Desnoyers says as the world economy loses steam, commodity prices will fall, taking the loonie with them to around US92 by January. The developed G-7 economies will slow, and capital inflows to U. S. financial assets will bolster the U. S. dollar. As Marion sums up: “. . . Weaker global economic growth will undermine commodity prices for the foreseeable future.”

Precious metal miners tumbled over the recent trading period, along with gold and silver prices. Brazilian gold miner Jaguar Mining lost US$1.38 to US$6.52. Gold majors Barrick Gold, Goldcorpand Newmont Mining also lost ground, as did Agnico-Eagle Mines and South African miner Gold Fields.

Silver miners did not fare any better, with Coeur D’Alene Mines tumbling US84 to US$1.74 and Hecla Mining falling US$1.47 to US$6.59. Platinum miner Stillwater Mining lost US$1.53 to US$6.37 despite news of a takeover bid for fellow platinum miner Lonmin by Xstrata.

After a huge rally earlier this year, the coal sector was down mostly on fears of a U. S. economic slowdown. The potash and fertilizer sectors, which enjoyed a substantial rise earlier in the year, were also down. However, copper miner Freeport-McMoRan Copper & Gold, and aluminum maker Alcoa, were up.

U. S. most active issues
	VOLUME	WEEK
	(000s) HIGH	LOW	CLOSE	CHANGE
Vale* RIO	160361 27.09	24.50	24.76	-1.60
Freeport McMo*FCX	103142 91.70	75.81	82.30	+ 1.95
CoeurdAlene*CDE	91624 2.62	1.69	1.74	-0.84
PotashCSask* POT	73332183.72	156.95	160.91	-19.23
Barrick Gold* ABX	69384 39.05	32.23	32.77	-7.25
Goldcorp* GG	64880 34.85	29.09	29.91	-5.34
Alcoa* AA	55876 32.73	30.65	31.23	+ 0.36
Newmont Mng* NEM	49343 45.79	40.78	41.50	-4.62
Gold Fields* GFI	47345 10.28	8.58	8.65	-1.13
Massey Energy* MEE	47005 68.17	54.10	56.08	-9.83

U. S. greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Aspire Intl*	APIT	17	0.47	0.08	0.33	+153.8
Nilam Res*	NILR	4105	0.04	0.02	0.04	+100.0
El Capitan Pr*	ECPN	793	0.18	0.13	0.17	+ 21.4
Birch Mountn*	BMD	863	0.30	0.22	0.29	+ 20.8
Industrl Mnls*	IDSM	170	0.08	0.05	0.06	+ 20.0
Geocom Res*	GOCM	92	0.14	0.08	0.12	+ 20.0
Clifton Mng*	CFTN	47	0.27	0.23	0.25	+ 19.0
Cabot Corp*	CBT	3028	29.36	25.51	29.24	+ 14.5
OM Group*	OMG	7897	35.59	28.86	32.84	+ 10.3
General Moly*	GMO	1396	7.68	6.40	7.50	+ 8.7
Commerce Grp*	CGCO	28	0.12	0.08	0.08	-52.9
Fischer-W Gld*	FWGO	72	0.04	0.03	0.03	-40.0
Global Gold*	GBGD	1450	0.17	0.03	0.15	-37.5
Golden Star*	GSS	28837	2.28	1.36	1.41	-37.0
Radius Gold*	RDUFF	39	0.33	0.15	0.16	-36.0
America West*	AWSR	172	0.44	0.27	0.30	-33.3
Coeur d Alene*	CDE	91624	2.62	1.69	1.74	-32.5
Argentex Mng*	AGXM	212	1.05	0.73	0.73	-29.8
New Jersey Mg*	NJMC	84	0.43	0.29	0.29	-27.5
Alberta Star *	ASXSF	799	0.30	0.20	0.22	-26.6

U. S. greatest value change
WEEK
		VOLUME	CLOSE	CHANGE
Cabot Corp*	CBT	3027570	29.24	+ 3.72
OM Group*	OMG	7896723	32.84	+ 3.08
Freeport McMo*	FCX	103142408	82.30	+ 1.95
Westmoreland*	WLB	265692	21.78	+ 1.31
MDU Res*	MDU	5653713	32.75	+ 1.30
Foundatn Coal*	FCL	10612111	53.61	+ 0.92
General Moly*	GMO	1396426	7.50	+ 0.60
Alumina Inc*	AWC	665134	16.65	+ 0.56
Alcoa*	AA	55875816	31.23	+ 0.36
Aspire Intl*	APIT	16800	0.33	+ 0.20
Rio Tinto*	RTP	2533970	347.81	-24.25
Potash C S ask*	POT	73332197	160.91	-19.23
Cleveland-Cli*	CLF	26646617	85.90	-14.89
Mosaic*	MOS	41612483	96.35	-12.89
Massey Energy*	MEE	47005358	56.08	-9.83
Alpha Nat Res*	ANR	16473453	88.30	-9.60
Barrick Gold*	ABX	69384079	32.77	-7.25
ASA (Bermuda)*	ASA	558406	64.00	-6.91
Gold Mnrs ETF*	GDX	26700688	34.43	-6.42
Agnico-Eagle*	AEM	22238040	45.83	-6.32