TSX follows Wall Street lower on weak US retail data
The Toronto Stock Exchange shed early gains Wednesday as Wall Street set the tone with investors again weighing high yield bonds and data on US retail disappointed. The April figures showed a stagnant sector although March’s figures were revised higher. Gold prices advanced which helped Canada’s miners mitigate some of the effects of the declining index. Asian markets ended their session mixed with Beijing falling late in the day as industrial output data showed continued weakness. Australia advanced again to end on a one week-high. Europe ended the day weaker following US retail data and mixed Eurozone GDP figures which showed Germany flagging.
The S&P/TSX Composite Index closed down 62.43 (0.42 per cent)
The NYSE closed down lower (although the Nasdaq advanced slightly)
Oil is trending lower (Brent $66.52, WTI $60.13 at 4.20pm)
Gold is trending higher
The loonie is valued at U$0.83.52 (at 4.20pm)
Analysts speculate on higher inflation target
The finance minister Joe Oliver told reporters in New York Wednesday that he would be discussing the inflation target with the Bank of Canada in due course but refused to be drawn on whether a higher target would be likely. Mr Oliver said that the 2 per cent target had served the country well but some believe it may be appropriate to work to a higher number. BMO Capital chief economist Doug Porter told the Financial Post that he appreciates the arguments for a higher inflation target but that there are a lot of arguments against it.
Housing markets surprise on Teranet-National HPI
Home prices in Canada advanced just 0.2 per cent in April, the weakest for the month since the recession. The latest Teranet-National house price index revealed that it wasn’t down to a large drop in Calgary; in fact the city advanced by 0.2 per cent while Vancouver and Toronto were flat; Edmonton was also up, by 0.6 per cent. However the report says that corrections are underway in 8 of 11 markets surveyed with Ottawa declining by 2.3 per cent in the month and 4.1 per cent year-over-year.
Trican announces 2,000 lay-offs
Trican Well Service Ltd has announced that it is cutting 2,000 jobs from its North American workforce and has stopped paying dividends to shareholders. The Calgary-based firm is looking to renegotiate debt terms and is looking to sell a Russia business unit as it looks to shore up finances. The company has announced a $35.7 million net loss.