TSX ends lower as banks, railways decline
The Toronto Stock Exchange closed Thursday just below the line as banks and railways saw declines while mining offset some of the losses. As the major banks have announced their results during this week they have beaten analysts’ expectations but investors are less keen on the detail. Elsewhere Wall Street also closed lower as transport stocks declined and Greek debt knocked sentiment. The uncertainty over a deal has been a drag on European markets of course and the major indexes closed with losses; London’s FTSE bucked the trend. In Asia the concern is over China’s tightening of margin financing and markets closed mixed.
The S&P/TSX Composite Index closed down 3.49 (0.02 per cent)
The NYSE closed lower
Oil is trending higher (Brent $62.88, WTI $57.96 at 4.30pm)
Gold is trending higher
The loonie is valued at U$0.8040 (4.30pm)
Current account deficit grew again in the first quarter
New data from Statistics Canada show that the deficit in Canada’s current balance of international payments expanded for the second straight quarter having declined for the previous three. The current account deficit grew by $4.4 billion to $17.5 billion in the first three months of 2015 after also expanding in Q3 of 2014; trade in goods dropped, largely in the energy sector. Foreign investment in Canadian bonds was the largest contributor the net inflow of funds into the country. Canadian investment abroad slowed.
RBC, CIBC results beat expectations
The banks continue to beat the expectations of analysts as they report their 2nd
quarter results this week. RBC and CIBC reported Thursday. RBC saw strong net income for its domestic banking (7 per cent) and capital markets (23 per cent) divisions. Total revenue was up to $2.5 billion from $2.2 billion a year earlier. Meanwhile CIBC reported that its wholesale banking division’s net income was up 17 per cent with retail and business banking up 6.8 per cent. Total adjusted revenue for the quarter was $3.52 billion.
Conference Board says Alberta recession is unavoidable
Alberta will slip into recession says a new report from the Conference Board of Canada but it’s not all bad news. Despite a forecast of a 0.7 per cent decline in GDP for 2015 and just 1.1 per cent growth for 2016 and job losses in the energy sector; the report says that non-energy jobs will grow and keep the province’s unemployment rate at 5.6 per cent on average for this year, below the national average.
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