Banks, oil give TSX a lift
Stronger economic data; quarterly reports from BMO and Scotiabank; and stability in the oil price helped the TSX’s main index close more than 1 per cent higher Tuesday.
Wall Street also closed with gains despite manufacturing PMI which showed contraction in November.
Asian markets had closed their session higher despite weak PMI data from China.
European markets closed mixed as the ECB meeting Thursday takes centre stage.
The S&P/TSX Composite Index closed up 166.2 (1.23 per cent)
The Dow Jones closed up 168.4 (0.95 per cent)
Oil is trending mixed (Brent down at $44.37, WTI up at $41.72 at 4.15pm)
Gold is trending higher (1068.40 at 4.15pm)
The loonie is valued at U$0.7478
Canadian economy improves but outlook uncertain
Tuesday brought some positive news about Canada’s economy but it was data tinged with a note of caution. GDP figures from Statistics Canada revealed a strong bounceback from the technical recession although September showed weaker growth leading to concern about how the fourth quarter will end up. The annualized rate of real GDP for Q3 was 2.3 per cent; up from contraction of 0.3 per cent in the second quarter and contraction of 0.7 per cent in the first three months of 2015. The gains were driven by a 9.4 per cent annualized jump in exports as domestic demand was flat.
First two big banks report growth
The first of Canada’s Big Six banks reported their fourth-quarter earnings Tuesday with both showing gains despite the tougher conditions from the weakened oil sector.
Scotiabank’s year-over-year net income grew 28 per cent to $1.843 billion on increased revenue of $6.125 billion. Earnings increased to $1.43 per share from the $1.10 a year earlier.
Meanwhile the Bank of Montreal reported net income of $1.214 billion, up 13 per cent from a year earlier, on increased revenue of $4.982 billion. Earnings per share increased to $1.83 per ordinary share ($1.90 adjusted).