Oil prices up 3 per cent; TSX closes higher
Oil prices have been gaining Tuesday as demand increases from holidays will mean greater demand for gasoline especially in North America and Europe which will help with the supply glut although analysts are highlighting that the demand is seasonal. The energy sector of the Toronto Stock Exchange has helped push the main index higher meaning a positive close after Monday’s triple-digit fall. Wall Street also closed higher as oil prices helped offset concern over interest rates and bond yields. Asian markets closed lower on further weak data from China while Europe digested job losses at HSBC and Greek debt talks continue.
The S&P/TSX Composite Index closed up 74.38 (0.50 per cent)
The NYSE closed flat
Oil is trending higher (Brent $64.63, WTI $59.93 at 4.20pm)
Gold is trending higher
The loonie is valued at U$0.8099 (at 4.20pm)
Blacks camera stores to close in August
Another retailer will disappear from Canadian malls on August 8. Blacks, which has been in business for more than 80 years, will shut its 59 stores blaming the change in technology for the decision. The firm is owned by Telus which announced Tuesday that where possible the 485 staff affected will be offered jobs within its other operations.
Oil producers revise output forecast downwards
Canadian oilsands will produce fewer barrels of crude in the coming years than previously predicted according to the Canadian Association of Petroleum Producers. It says that by 2030 production will be 5.3 million barrels a day which is 17 per cent lower than previously forecast. However it is still more than the 2014 figure of 3.7 million per day.
Delinquencies increase slightly says Equifax
Canada is showing a small increase in the number of delinquent loans, which needs to be monitored according to Equifax. The credit agency says that the country’s total consumer debt is continuing to rise and now sits at $1.544 trillion, up 6.9 per cent from a year ago. Instalment loans and auto finance increased the most with average Canadians holding $20,910 of debt excluding mortgages. Delinquencies average 1.12 per cent nationally compared to 1.09 in the last quarter of 2014. In Alberta and Saskatchewan the rate is 1 per cent.
CPPIB to buy GE private equity division
The Canadian Pension Plan Investment Board said Tuesday that it will buy the private equity business of GE Capital. The portfolio is valued at $12 billion and comes as GE moves away from lending due to US regulations and focuses on its industrial business. CPPIB will gain from expanding its lending activities into a new market space.