Markets gain as oil jumps on Russian cap
Russia said Monday that it would join with OPEC producers in capping oil output to stabilize the market. The news saw prices jump with the international benchmark Brent up almost 2 per cent and US crude hitting its highest level in almost 15 months with a 3 per cent rise.
While the Toronto Stock Exchange was closed for the Thanksgiving holiday, other world markets closed higher on the rise for oil; Wall Street’s three main indexes closed up around 0.50 per cent and Europe’s markets were up around 1 per cent. Asian bourses closed before the gains for oil.
Gold also rallied Monday with prices up 0.75 per cent while other metals also gained; silver and copper by more than 1.5 per cent.
The S&P/TSX Composite Index was closed for Thanksgiving.
The Dow Jones closed up 88.55 (0.49 per cent)
Oil is trending higher (Brent $52.96, WTI $51.20 at 4.20pm)
Gold is trending higher (1261.40 at 4.20pm)
The loonie is valued at U$0.7594
Non-banks “crippled” by new mortgage rules says broker
The new mortgage rules being introduced by Ottawa next week are already having a “crippling” impact on non-bank mortgage lenders according to online broker Butler Mortgage.
The firm’s Ron Butler told the Globe and Mail that he predicts a significant shrinking of the sector’s market share with a 50 to 60 per cent decline in mortgage business over the next year.
The report says First National Financial that it was temporarily suspending loans for rental properties and stated income borrowers.
Other lenders including Merix Financial, MCAP and RMG are also pulling back from certain products or increasing mortgage rates for some.
James Laird, president of mortgage brokerage CanWise Financial told the Globe and Mail that while lenders may be ok with tightening of mortgage restrictions, that was not the case if it was not fairly implemented.
“What we’re not on board with is systematic changes that benefit the banks at the cost of the mortgage brokers backed by monoline lenders,” Mr laird said.
PM’s wife will open TSX Tuesday
When the Toronto Stock Exchange re-opens Tuesday after the holiday, it will be the prime minister’s wife ringing the opening bell.
Sophie Gregoire Trudeau will be joined by Farah Mohamed, founder of female leadership advocacy G(irls)20 for the launch of a new investment platform which will raise funds to further the work of the organization.
Tuesday has been chosen as the launch as it is International Day of the Girl and the TSX event will also be supported by FitSpirit/Fillactive and Plan International Canada.