Another record for the TSX as healthcare, telecoms lead gains
Optimism in the Canadian and US economies helped the main TSX index reach another record high Wednesday.
Healthcare and telecoms led the gains with 8 out of the 10 sectors closing higher; materials and utilities were the exceptions. Meanwhile, oil prices slipped as US stockpile data showed strong gains; and gold recovered early losses as the greenback eased.
Sentiment was high on Wall Street with the three main indexes closing higher, European bourses also ended on a high while Asian markets closed mixed.
The S&P/TSX Composite Index closed up 58.92 (0.37 per cent)
The Dow Jones closed up 107.5 (0.52 per cent)
Oil is trending lower (Brent $55.66, WTI $53.00 at 4.40pm)
Gold is trending higher (1233.70 at 4.40pm)
The loonie is valued at U$0.7648
Manufacturing sales up 2.3 per cent
For the second consecutive month, manufacturing sales gained 2.3 per cent in December following a revised 2.3 per cent rise in November.
The $53.5 billion of sales in December reported by Statistics Canada was driven by transportation equipment and petroleum & goal products but overall only 8 of the 21 sectors gained.
In constant dollar terms, there was a rise of 2.3 per cent.
There were higher sales in six provinces but Ontario and Quebec saw most of the growth.
BMO says there is a Toronto housing bubble
There’s a housing bubble in Toronto, BMO’s chief economist said Wednesday.
Douglas Porter said that prices rising 22.6 per cent in a year was the fastest pace since the 1980s and is also 21 per cent above inflation. He said prices were “dangerously detached” from economic fundamentals.
However, a report released by the Canadian Real Estate Association suggests that the bubble isn’t set to burst in the short-term.
“The shortage of homes available for sale has become more severe in some cities, particularly in and around Toronto and in parts of BC,” said Gregory Klump, CREA’s Chief Economist. “Unless sales activity drops dramatically, the outlook for home prices remains strong in places that face a continuing supply shortage.”