Markets rebound following Brexit slump
World equity markets saw a rebound Tuesday as investors seized an opportunity to pick up stocks at bargain prices following two days of sharp losses.
Toronto’s main index finished with a triple-digit gain led by financial and energy sectors; the latter helped by a rise in oil prices as a Norwegian oil workers’ strike looms for the weekend. The loonie was up more than 20 cents against the greenback.
Wall Street also pared losses from the previous two sessions.
Asian markets closed broadly higher although Hong Kong was slightly lower; European indexes were up 2.5 per cent at the end of the session.
However, analysts expect further bouts of volatility ahead.
The S&P/TSX Composite Index closed up 152.9 (1.12 per cent)
The Dow Jones closed up 269.5 (1.57 per cent)
Oil is trending higher (Brent $48.75, WTI $48.09 at 4.40pm)
Gold is trending lower (1314.30 at 4.40pm)
The loonie is valued at U$0.7672
Canada-EU trade deal could be done by the fall
The CETA trade deal between Canada and the European Union, which is expected to boost trade between the two partners by around 20 per cent, could be signed in the fall.
The European Commission president Jean-Claude Juncker said Tuesday that there would be a vote on a proposal to make the deal a matter for the European Parliament only, rather than it requiring individual EU member parliaments to approve it.
That would speed up the deal which could be signed in October when Justin Trudeau visits Brussels.
Provincial finances not looking so good says budget watchdog
The Parliamentary Budget Officer has warned that provincial finances will suffer from the rising cost of healthcare and action is needed to tackle debt levels.
Although Jean-Denis Frechette says that federal finances are sustainable with debt set to be cleared in 50 years; but provinces’ finances are fiscally unsustainable with spending cuts and tax hikes required even to stabilize current debt levels.
The PBO report notes that the longer the provinces delay making changes to address the issue, the “greater the required adjustment.”