Greece financial crisis drags TSX, NYSE down 1 per cent
North American stock markets dropped 1 per cent Tuesday as the ripple effect of the Greek financial crisis hit our shores again. By the close though both New York and Toronto had clawed back the losses and managed small gains. Asian markets had closed earlier in the day with gains for Australia and Japan but losses elsewhere where concern over Greece was exacerbated by uncertainty about the new support measures unveiled by Beijing at the weekend. European markets closed with losses with investors awaiting any new Greek deal.
The S&P/TSX Composite Index closed up 30.93 (0.21 per cent)
The NYSE closed higher
Oil is trending higher (Brent $57.27, WTI $52.83 at 4.20pm)
Gold is trending lower
The loonie is valued at U$0.7880 (at 4.20pm)
Canada’s trade deficit widens
New figures from Statistics Canada show that the country’s merchandise trade deficit with the world widened from $3.0 billion in April to $3.3 billion in May. Canada's exports declined 0.6 per cent in May while imports edged up 0.2 per cent. Export volumes decreased 2.5 per cent and prices increased 1.9 per cent. Meanwhile, import volumes were up 0.3 per cent and prices edged down 0.1 per cent. Exports to the US declined by 0.3 per cent to $32 billon while those to non-US countries were down 1.6 per cent to $10 billion. The figures have increased calls for an interest rate cut when the BoC meets next week.
RBC deemed too big to fail
The Royal Bank of Canada looks set to be the country’s first to appear on a global list of financial institutions that are systematically important globally. Canaccord Genuity analyst Gabriel Dechaine says that the bank is just below the threshold which would deem it ‘too big to fail’ and if it makes the updated list in November it will be hit with additional capital requirements. Dechaine said in a client note that RBC already meets the current additional requirements but if it is included on the list it would have to continue to stay in step with other ‘Bucket 1’ banks in the future.
Alberta to narrowly escape recession says ATB
ATB Financial says that Alberta could narrowly avoid slipping into recession this year but growth is unlikely. The provincial bank has cut its growth forecast in half since March and now expects GDP to hit 0.4 per cent rather than the 0.8 per cent it expected in its previous outlook. CBC News reports that real estate, hotels and drilling are among the sectors that have been hardest hit by the decline in oil prices.