Canadian bank chief hints at interest rate cut
He’s Canadian, he’s in charge of a central bank and he’s hinted of an interest rate cut in the summer.
Unfortunately, this central banker is not Stephen Poloz but Canadian ex-pat Mark Carney, governor of the Bank of England who spoke Thursday of a slowdown for the UK economy post-Brexit and said that some action is likely to be required to ease the pain.
His words calmed the markets but the underlying trauma facing businesses in the UK is the talk of the City of London.
Here, the main TSX index closed higher for the third consecutive session but gains were subdued by declining oil prices and mixed results for Canada’s GDP.
Wall Street, European and Asian markets closed generally higher.
The S&P/TSX Composite Index closed up 27.80 (0.20 per cent)
The Dow Jones closed up 235.3 (1.33 per cent)
Oil is trending lower (Brent $49.72, WTI $48.33 at 4.45pm)
Gold is trending lower (1325.00 at 4.45pm)
The loonie is valued at U$0.7738
GDP edged higher in April
Canada’s GDP edged slightly higher in April following two months of decline. The 0.1 per cent rise was driven by increases for manufacturing, utilities and the public sector but the gain was largely offset by decline for non-conventional oil extraction.
Services were up 0.2 per cent while goods producers dipped 0.1 per cent with manufacturing gains weighed by decreases in mining, oil and gas extraction, quarrying, and agriculture and forestry.
Northern Gateway pipeline approval overturned
Ottawa’s approval for Enbridge’s Northern Gateway has been overturned by the Federal Court of Appeal on the grounds that First Nations along the route were not consulted.
The project was approved under the Harper government in 2014 but was challenged in court by eight First Nations along with environmental groups and a labour union.