TSX suffers large losses led by energy, financials
The week hasn’t got off to a good start for the Toronto Stock Exchange with a fall of almost 1.5 per cent. Energy stocks and financials led the losses but all of the sectors felt the impact. World markets are in cautious mode with a potential US interest rate rise, volatility in bonds and oil, geo-political tension and mixed data. Wall Street’s losses were less severe than Toronto’s but the Dow has now lost its gains for the year. In Europe the added pressure from Greek debt talks and increased tension between the G7 and Russia. Asian markets also closed lower with only Shanghai managing a positive close.
The S&P/TSX Composite Index closed down 213.8 (1.43 per cent)
The NYSE closed lower
Oil is trending lower (Brent $62.82, WTI $58.36 at 4.30pm)
Gold is trending higher
The loonie is valued at U$0.8064 (at 4.30pm)
Canada agrees to G7 plan for carbon reduction
Prime Minister Stephen Harper has agreed with the other members of the G7 to reduce carbon emissions over the next 35 years with fossil fuels being phased out by 2100. Speaking after the leaders made the pledge Mr Harper gave reassurances that it would not mean a sudden jolt for the energy sector or the nation as a whole but it would mean committing to finding new, less harmful ways to produce and use energy. However it’s been reported that Canada, along with Japan, objected to tougher measures on greenhouse gasses.
Condo demand pushes housing starts higher
There was an uptick in housing starts in May as the condo sector grew. New figures from CMHC show that the seasonally-adjusted rate of new building was 201,705 units, up from 183,329 in April. Just 59,000 of the housing starts were single-family homes with condos and apartment buildings surging by 16.9 per cent to 126,367 units. Atlantic Canada, Ontario and Quebec saw increased starts with BC and the Prairies lower.
Cogeco buys US cable firm for $200 million
Canada’s Cogeco Cable is acquiring Connecticut firm MetroCast Communications for around $200 million. The announcement Monday revealed that the Montreal-based firm will roll out new services as part of its enlarged Atlantic Broadband division. Atlantic has around 224,000 customers for its TV service and will add 70,000 with the MetroCast deal.