U. S. MARKETS – OCT 7-13

“Volatile” would be an understatement to describe the Oct 7-13 trading session. Early in the period, U. S. markets continued their steep falls from the previous week. Finance ministers from the G-7 industrialized countries met in Washington, and agreed to co-ordinate a series of steps to stabilize the banking system and unfreeze credit. The Federal Reserve cut the federal funds rate to 1.5% from 2%, followed by a US$250-billion plan by the U. S. Treasury to buy equity stakes in U. S. banks in order to shore up their balance sheets and kick-start moribund credit markets.

The decisive action seems to have finally restored investor confidence, leading to a jump in U. S. markets on Oct. 13. This has not saved market indices from posting losses for the trading session. The Dow Jones Industrial Average lost 568 points, or 5.7%, to 9,388; the S&P 500 dropped 54 points, or 5.1%, to 1,003; and the Nasdaq lost 19 points, or 1%, to 1,844. Precious metal indices declined slightly, with the Amex Gold Bugs Index losing 1 point, or 0.4%, to 251, and the Philadelphia Gold and Silver Index dropping 0.7 of a point, or 0.7%, to 104.5.

National Bank points to a number of indicators foreshadowing an economic slowdown. These include lower microchip sales, slowing global trade flows, rising U. S. unemployment, and falling U. S. retail sales. National Bank economist Stfane Marion says that U. S. gross domestic product will contract, slowing demand for Chinese exports, and weighing down on commodity prices.

Meanwhile, website MarketWatch reports a different view of Merrill Lynch analysts who say that all the money injections by central banks will be inflationary for commodities. Without giving a time scale, they project that gold will hit US$1,500 per oz., and oil will go to US$150 per barrel.

A number of mining stocks posted gains, including mega-miner Vale rising US$1.03 to US$15.49, and copper major Freeport-McMoRan Copper & Gold gaining US$2.16 to US$45.37.

U. S. most active issues
	VOLUME	WEEK
	(000s) HIGH	LOW	CLOSE	CHANGE
Vale* RIO	378550 15.49	10.50	15.49	+ 1.03
Alcoa* AA	188554 18.94	10.51	13.82	-4.29
Freeport McMo*FCX	155792 46.66	32.50	45.37	+ 2.16
PotashCSask* POT	123185109.25	79.94	105.80	+18.89
Barrick Gold* ABX	117200 35.84	26.26	28.12	-1.89
Mosaic* MOS	114700 44.98	31.55	44.21	+ 7.05
Goldcorp* GG	101453 31.02	23.75	24.70	+ 0.05
Peabody Enrgy* BTU	83375 37.90	25.43	34.16	-0.95
Kinross Gold* KGC	67197 16.30	12.00	13.16	-0.34

U. S. greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Alberta Star *	ASXSF	734	0.22	0.10	0.18	+ 50.0
AmMex Gold*	AMXG	127	0.04	0.01	0.03	+ 50.0
Campbell Res*	CBLRF	510	0.03	0.01	0.03	+ 50.0
Paramount Gld*	PZG	428	0.61	0.36	0.52	+ 44.4
Uranium Star*	URST	502	0.10	0.04	0.10	+ 42.8
Tanz Roy Exp*	TRE	2354	3.05	2.04	2.70	+ 39.1
Fischer-W Gld*	FWGO	35	0.04	0.03	0.04	+ 33.3
Tombstone Exp*	TMBXF	271	0.16	0.11	0.16	+ 33.3
Harmony Gold*	HMY	22266	10.81	7.88	10.03	+ 29.5
Patriot Gold*	PGOL	225	0.09	0.06	0.09	+ 28.5
Raven Gold*	RVNG	579	0.05	0.01	0.01	-66.6
Grandview Gld*	GVGDF	109	0.14	0.08	0.08	-38.4
PlatinumGpM*	PLG	15	1.23	0.78	0.80	-36.0
Silver Res*	SLVV	77	0.28	0.14	0.18	-35.7
Uranium Res*	URRE	5127	1.29	0.69	0.82	-34.9
Metalline Mng*	MMG	33	0.65	0.43	0.43	-33.8
Commerce Grp*	CGCO	67	0.08	0.01	0.04	-33.3
Buckingham Ex*	BUKX	50	0.03	0.02	0.02	-33.3
Keegan Res*	KGN	43	1.35	0.61	0.80	-30.4
Cream Mnrls*	CRMXF	59	0.08	0.05	0.07	-30.0

U. S. greatest value change
WEEK
	VOLUME	CLOSE	CHANGE
Potash C Sask* POT	123185302	105.80	+ 18.89
Mosaic* MOS	114700066	44.21	+ 7.05
Alpha Nat Res* ANR	30708300	42.79	+ 4.17
Agrium* AGU	9088800	43.29	+ 3.90
Soc Quim&M Ch*SQM	9119288	21.75	+ 3.75
Randgold Res* GOLD	8141106	36.76	+ 3.30
AngloGold Ash* AU	16341068	20.32	+ 2.96
Intrepid Pots* IPI	3184100	24.51	+ 2.64
Harmony Gold* HMY	22266467	10.03	+ 2.29
Royal Gold* RGLD	5487873	36.67	+ 2.19
Alcoa* AA	188554297	13.82	-4.29
Agnico-Eagle* AEM	29203824	39.79	-4.03
Seabridge Gld* SA	2039341	10.18	-4.02
Newmont Mng* NEM	65398288	31.08	-3.32
Cabot Corp* CBT	5377772	26.07	-3.29
MDU Res* MDU	12636387	20.83	-2.93
Pan Am Silver* PAAS	14791556	14.30	-2.79
ASA (Bermuda)* ASA	554291	48.36	-2.08
Barrick Gold* ABX	117199863	28.12	-1.89
Mesabi Trust* MSB	815329	14.30	-1.70