Another higher close for the TSX as oil gains almost 4 per cent
Thursday marked the fifth straight day of gains for the Toronto Stock Exchange as oil prices continued their positive streak.
Energy sector stocks rose 3.4 per cent and helped the main index close with a triple-digit gain. Wall Street also finished higher.
Asian markets had closed mixed earlier as China’s markets re-opened after a week-long public holiday and caught up with the events it had missed.
European markets ended the day higher despite weak German data; boosted by a near 4 per cent rise in crude oil prices.
The S&P/TSX Composite Index closed up 110.3 (0.80 per cent)
The Dow Jones closed up 138.5 (0.82 per cent)
Oil is trending higher (Brent $53.30, WTI $49.65 at 4.45pm)
Gold is trending lower (1139.00 at 4.45pm)
The loonie is valued at U$0.7683
Canada’s provinces have more debt than Ottawa
The combined debt of the provinces has exceeded that of the federal government for the first time according to TD Bank. Ottawa is projected to have debt of 28 per cent of GDP for 2016, continuing the decline of federal debt over the past 20 years. The provinces have seen debt levels increase and together are estimated to have reached 30 per cent of GDP. BC and Quebec are the only provinces to balance or run a surplus next year according to TD’s economists.
CMHC warns of overbuilding
CMHC published new housing starts data Thursday which showed a 7.7 per cent rise in September with the condo sector starting work 10.5 per cent more homes than a year earlier. However it noted that the level of building was higher than the agency’s target of 190,000 for 2015 and warned that companies may be overbuilding with the risk of a glut of unsold homes. Chief economist Bob Dugan advised that inventory management must guard against the situation.
Encana agrees sale of Colorado assets to group including CPP
Calgary-based Encana will sell U$900 million in oil and gas assets in Colorado to a consortium including the CPP Investment Board. The 51,000 square acres of Denver Julesburg Basin land included in the deal will be 95 per cent owned by the Canadian Pension Plan’s investment arm. Encana is divesting non-core assets and reducing debt.