Commodities dive, TSX down 188 points
The main TSX index closed lower Friday as commodities plunged; oil and gold prices down more than 3 per cent at the session close.
The materials sector of the S&P/TSX Composite was down more than 4 per cent and there were losses for a total of 7 sectors while industrials was flat and IT and healthcare managed slim gains.
Wall Street was mixed with the Dow and Nasdaq closing higher while the S&P500 dipped. European markets were also mixed with Frankfurt’s DAX outperforming peers including London and Paris. There had been a similar split for Asian markets.
The S&P/TSX Composite Index closed down 188.8 (1.28 per cent)
The Dow Jones closed up 39.78 (0.21 per cent)
Oil is trending lower (Brent $44.62, WTI $43.19 at 4.55pm)
Gold is trending lower (1225.20 at 4.55pm)
The loonie is valued at U$0.7382
Keystone XL could be revived under Trump
The change of administration in the White House could be good news for Calgary’s TransCanada if a Republican senator’s request is granted.
Mitch McConnell said Friday that he asked president-elect Trump to move quickly to approve the Keystone XL pipeline which was vetoed by President Obama.
The pipeline would carry around 800,000 barrels of crude from Alberta and North Dakota to Nebraska.
Mortgage rates rise on regulation impact
Canada’s big banks are increasing mortgage rates following the federal government’s introduction of tighter lending rules. RateSpy.com says that borrowers are paying 2.3 per cent for a typical discretionary 5-year variable rate mortgage, up from 2.25 per cent, due to the regulations increasing the cost of lending.
Bombardier nearly went bankrupt last year says CEO
The amount of financial pressure that Bombardier is under has been highlighted in an interview with its CEO Alain Bellemare.
Speaking on CBC, he said that the firm still needs to cut its cost structure to ensure the firm’s long-term future and that “Bombardier was on the brink of bankruptcy in 2015.”
Without the investments from the Quebec and others; and the sale of certain assets, Bombardier may have filed for bankruptcy protection, Mr Bellemare said.