Financials, materials lead gains as TSX closes higher
Gains for the financials and materials sectors helped push the main TSX index higher Monday, outperforming Wall Street. Oil and gold prices gained ahead of Fed and Bank of Japan meetings this week and growing hopes of a deal to stabilize oil markets.
On Wall Street, the Fed was in focus along with the bombings in New York and New Jersey. The three main indexes closed flat.
Asian and European indexes closed broadly higher ahead of central bank meetings and with the rise in oil prices.
The S&P/TSX Composite Index closed up 45.54 (0.32 per cent)
The Dow Jones closed down 3.63 (0.02 per cent)
Oil is trending higher (Brent $45.89, WTI $43.25 at 4.30pm)
Gold is trending higher (1316.40 at 4.30pm)
The loonie is valued at U$0.7572
New CPP will bring greater benefits…in about 40 years
Changes to the Canadian Pension Plan will mean retirees receiving a third of pre-retirement income but it will take 40 years of contributions before that is realized. That means that today’s teenage workers can expect to enjoy full benefits from the increased payouts of up to $20,000 (index linked to inflation) when they get to retirement while current retirees and those about to retire will see little or no benefit.
Finance minister Bill Morneau said Monday that the more generous CPP was necessary to cover the decrease in workplace pensions and admitted that there would be short-term pain from higher contributions in order for the plan to remain fully-funded.
Unifor optimistic of deal with GM before tonight’s deadline
Time is running out for a deal between the union representing Canadian motor workers and General Motors. The deadline is midnight Monday to avoid strike action.
Unifor said in a statement at midday that talks were progressing in its bid to protect the future of workers at GM’s Oshawa plant and secure investment in the St. Catharines facility. However, no further details have been given at this time.
Canadian agency eyes export opportunities in the UK
Post-Brexit Britain could provide opportunities for Canadian exporters according to Export Development Canada. The crown corporation has established a new office in London in order to take advantage of an expected wave of interest from Canadian firms seeking increased exports to the UK.