Oil boosts TSX but gold producers lose out
Tuesday brought another strong session for the main TSX index with energy and financials leading the gains as oil prices rose almost 5 per cent on a “technical correction” and expectation that US stockpiles will have declined in official figures due Wednesday.
Gold producers continued to see prices slide as investors focused on rising equities and currency.
World markets were generally higher with Asian markets boosted by expectation of greater stimulus in Japan; and European indexes gaining on easing Brexit concern although London closed flat.
Wall Street’s main indexes closed higher with the S&P500 hitting a record high for a second straight session.
The S&P/TSX Composite Index closed up 115.8 (0.81 per cent)
The Dow Jones closed up 120.7 (0.66 per cent)
Oil is trending higher (Brent $48.27, WTI $46.79 at 4.25pm)
Gold is trending lower (1335.00 at 4.25pm)
The loonie is valued at U$0.7678
BoC expected to be dovish, hold interest rates
The Bank of Canada’s latest interest rates decision will be announced Wednesday and although analysts are not expecting a change, that was also the case a year ago when governor Stephen Poloz made a surprise cut.
Whatever happens with interest rates, the BoC is expected to be dovish about the economy with heat in some housing markets but disappointing exports and a fluctuating Canadian dollar.
Other key points expected from Mr Poloz’s speech are continuing concern over household debt, potential impact from Brexit, and a lower-than-expected growth in the US economy.
The central bank is widely expected to cut its outlook forecast for Canada’s economy.
Alberta set for 1.9 per cent decline says ATB
Alberta’s economy will decline by 1.9 per cent for 2016 according to economists at ATB Financial. The provincial lender believes that the Fort McMurray fires will exacerbate weak conditions following 2015’s 4 per cent contraction. However, the lender sees a turnaround for 2017 with positive growth of 2 per cent.
First Nations to get Hydro One share deal
Ontario will offer shares in Hydro One to First Nations the provincial government said Wednesday. The deal, which would need to be ratified by 80 per cent of band councils, would see the government lend First Nations in Ontario up to $268 million to buy 15 million shares at $18 each.