Liberals give Canadian stocks a lift as global equities slip
Most major stock markets closed lower Tuesday as weak oil prices and continued concern over the global economy dragged equities lower. Toronto managed to outperform most of its peers though as the election result boosted sentiment.
The talk of Bay Street was the potential for the new government to give the economy a fresh injection of energy and the end of uncertainty over the composition of the new federal administration. The government will launch a huge infrastructure spending program.
Elsewhere most Asian indexes closed lower with the exception of Shanghai and Tokyo; European markets and Wall Street closed with slim losses.
The S&P/TSX Composite Index closed up 83.54 (0.61 per cent)
The Dow Jones closed down 13.43 (0.08 per cent)
Oil is trending mixed (Brent up at $48.74, WTI down at $45.84 at 4.20pm)
Gold is trending higher (1176.60 at 4.20pm)
The loonie is valued at U$0.7703
Marijuana stocks rise on legalization expectation
The expectation that the new Trudeau government will legalise marijuana has already given producers’ stocks a boost. The burgeoning industry’s customer base is limited currently to those with legitimate medical needs but legalization would present a large opportunity for growth.
Wholesale trade slipped in August
Statistics Canada’s latest wholesale trade data shows a decline in August of 0.1 per cent in dollar terms (to $55.3 billion) and 0.5 per cent in volume terms. Among the subsectors that declined were; machinery, equipment and supplies were down 2.4 per cent to $11 billion; motor vehicles and parts were down 1.2 per cent to $10.2 billion; and the food, beverage and tobacco subsector was down 0.4 per cent to $10.7 billion. The farm product sector saw the largest percentage gain, up 6.9 per cent to $690 million; miscellaneous was up 4.3 per cent to $7.3 billion; building materials and supplies gained 1 per cent to $7.3 billion.
EU beef is returning to Canada
Canada has lifted the ban on beef from the EU almost two decades after it was banned due to a health scare. Imports were shut down following the BSE scare in 1996 after cows contracted mad cow disease. The European Commission says the reopening of the Canadian market should see imports resuming swiftly.