Daily Wrap-up

Daily Wrap-up

Daily Wrap-up TSX closes higher as investor sentiment grows
The Toronto Stock Exchange’s main index ended the day with gains having enjoyed a day of largely positive trading. Nine of the ten main sectors gained led by Couche-Tard which announced that it was not its Circle K subsidiary that had filed for bankruptcy protection in the US but another firm with the same name. Minerals producers also gained. Optimism was higher as news from Europe suggested that a solution to Greek debt was closer; Europe’s main markets closed higher. London was closed for a public holiday. Asia’s markets closed broadly higher on expectation of increased stimulus for China after more weak factory data. Wall Street was sharing Canada’s sentiment as investors weighed global issues and looked ahead to economic data this week.

The S&P/TSX Composite Index closed up 27.70 (0.18 per cent)

The NYSE closed higher

Oil is trending lower (Brent $66.45, WTI $58.94 at 4.25pm)

Gold is trending higher

The loonie is valued at U$0.8269 (at 4.25pm)
 
Loonie could hit 85 cents…for a short time
Economists are talking about the Canadian dollar hitting 85 cents at some point this quarter but it will be a short-lived high. Experts at Scotiabank forecast the loonie to reach very close to that mark before slipping back to around 79 cents by the end of the year. CIBC World Markets is suggesting 80 cents by the end of the quarter before slipping back to 79 cents at year-end. It has spent Monday at just above 82 cents.
 
Trudeau unveils ‘Robin Hood’ budget plan
Justin Trudeau says the Liberal party’s budget would tax the richest and give to the poor. The alternative to the Harper government’s plan would see Canada’s top 1 per cent paying more tax which would fund more generous child benefit payments and tax cuts for middle-income earners. The 22 per cent tax rate would be cut to 20.5 per cent for those earning between $44,701 and $89,401 with top earners (above $200,000) paying a new 33 per cent rate. Income-splitting and the additional allowance on tax-free savings accounts would be scrapped.
 
Average Vancouver home now 12.5 per cent more expensive
House prices in Vancouver have increased again with the average cost of a detached home rising 12.5 per cent in April to $1.08 million. The Real Estate Board of Greater Vancouver said Monday that a low level of listings has pushed prices higher; sales were up 37 per cent from April last year.
 
Seniors now make up a larger proportion of bankruptcies
The number of insolvent seniors in Canada grew to 30 per cent of all bankruptcies in 2013-14, a rise of 3 percentage points from the previous two year period. A report from bankruptcy experts Hoyes, Michalos & Associates also found that seniors have higher levels of debt than younger Canadians with over 60s averaging $69,031 unsecured compared to $56,545 across all age groups.