Markets higher as TSX strikes gold
The Toronto Stock Exchange closed higher Thursday as gold miners helped mitigate weaker performance from the industrial sector. Wall Street also helped underpin the gains with New York reacting to the weaker greenback and stability in the bonds market, although economic data for the US continues to show lower-then-hoped growth. Asia closed mixed with China’s weaknesses still a concern and equities in Australia and Japan punished by their currencies’ stronger performance against the US dollar. Europe was boosted by the gains on Wall Street and strong results for the region’s steel producers.
The S&P/TSX Composite Index closed up 47.40 (0.32 per cent)
The NYSE closed higher
Oil is trending lower (Brent $66.73, WTI $59.72 at 4.30pm)
Gold is trending higher
The loonie is valued at U$0.8332 (at 4.30pm)
Prime Minister warning over household debt
Some households are carrying too much mortgage debt even if the housing market remains stable. That was the warning Thursday by Stephen Harper who made it clear that there would not be a tax on foreign home investment from the Conservative government. The prime minister said he believes the market is stable but that the government is watching things closely.
1,750 jobs to go at Bombardier
Reduced production of Bombardier’s 5000/6000 business jet will mean jobs losses of around 1000 in Montreal and 480 in Toronto; another 270 will go elsewhere. The lay-offs will begin next month and last into next year. The cuts and slowdown of production is part of a turnaround plan for the struggling transport manufacturer.
Canadians prefer cards to cash
Debit and credit cards are now the preferred method of payment for Canadian consumers according to Bank of Canada research. Cash was used for 53.5 per cent of retail transactions in 2009 but by 2013 the proportion was down to 43.9 per cent. Even smaller transactions such as parking charges are more often done with a card. The BoC study suggests that contactless payment methods are driving the increase. Perhaps unsurprisingly over 55s are more likely to use cash and the average amount of cash in our wallets is $84.