Brexit fears ease, TSX closes higher again
World markets gained Wednesday as concern over Brexit eased and investors continued the buying spree seen in the previous session.
Meanwhile, oil prices gained on a large drawdown in the US and concern over a Norwegian oil workers strike remaining.
The signs of investors seeking some safety was evident by the gains in metals and other commodities but this was also a help for equities with resources gaining along with financials.
The main TSX index closed higher for the second day, along with Wall Street and Asian markets. European indexes also closed higher; London’s FTSE gaining more than 3.5 per cent.
The S&P/TSX Composite Index closed up 191.9 (1.39 per cent)
The Dow Jones closed up 278.7 (1.60 per cent)
Oil is trending higher (Brent $49.89, WTI $49.25 at 4.10pm)
Gold is trending higher (1321.30 at 4.10pm)
The loonie is valued at U$0.7707
Mutual fund embedded commissions could be banned in the fall
The Canadian Securities Administrators will be seeking feedback from its membership of regional securities regulators on a proposal to ban mutual fund embedded commissions, which could be in place as early as the fall if it decides it is the right course of action.
Wealth advisers’ association Advocis said earlier this year that any ban would restrict access to financial advice for those who need it most and would be “a massive set-back for individual wealth accumulation and, ultimately, for the economy."
Closer trade vital for job creation say North American leaders
The leaders of Canada, Mexico and the US said Wednesday that free trade across North America must be encouraged. Meeting in Ottawa, the Justin Trudeau, Barack Obama and Enrique Pena Nieto agreed to build on the NAFTA agreement to enable easier trade between the three nations.
Canadian pension plans hit by Brexit says report
A report by analysts at Mercer Canada shows that Canadian pension funds have been hit by Brexit with the solvency ratio of a typical plan down almost 3 per cent.
The Brexit impact pushed the solvency ratio of most pension plans firmly into negative territory for the first half of 2016.
“The Brexit vote has clearly increased the level of geo-political and economic uncertainty – which probably means increased volatility for pension plans for months if not years to come,” said Manuel Monteiro, Leader of Mercer’s Financial Strategy Group. “Pension plan sponsors should ensure they remain comfortable with their current risk exposure.”