Daily Wrap-up: Oil continues rising, materials weigh on TSX

Daily Wrap-up: Oil continues rising, materials weigh on TSX

Daily Wrap-up: Oil continues rising, materials weigh on TSX Oil continues rising, materials weigh on TSX
Monday began with rising oil prices and when the markets closed the prices were still trending higher, helped by Iran calling for non-OPEC nations to join the output cap.

Despite the rise for oil and its positive impact on energy stocks, the main TSX index closed lower as materials led 7 of the 10 sectors in the wrong direction. Gold, silver and copper were among the commodities losing value.

Wall Street also slipped as economic data disappointed with auto sales and manufacturing weaker than expected; construction was the main drag on the manufacturing PMI.

Asian markets closed mostly higher as did Europe, although German and French markets were closed for holidays. London gained more than 1 per cent following the UK prime minister’s clues on Brexit and the country’s finance minister promising support for the economy if required.
 
The S&P/TSX Composite Index closed down 36.82 (0.25 per cent)
The Dow Jones closed down 54.30 (0.30 per cent)
Oil is trending higher (Brent $50.80, WTI $48.66 at 4.20pm)
Gold is trending lower (1315.60 at 4.20pm)
The loonie is valued at U$0.7630
 
Ottawa moves to curb housing markets
The federal government is taking steps to reduce the risk from rising debt as a result of the heat in the housing market.

Ottawa’s finance minister Bill Morneau said Monday that changes would include allowing only Canadian residents to benefit from the primary residence tax exemption for capital gains.

There will also be stronger stress tests for mortgage insurance to ensure that borrowers are only taking on loans that they can afford especially when interest rates increase. The stress tests will apply to all insured mortgages from Oct. 17, 2016.
 
OSC appoints new enforcement chief
A former managing partner and general counsel of Difference Capital Financial Inc. has been appointed as the new enforcement director of the Ontario Securities Commission. Jeff Kehoe will be responsible for investigating violations relating to securities markets and will head a team of 140. 

Kehoe was chosen for his broad experience of the sector; working in a financial institution; a previous enforcement role at the IIROC; and as an attorney.