Oil dips again, TSX closes lower
Oil prices fell again Tuesday having regained some ground in early trading following Monday’s slump. The Toronto Stock Exchange along with almost all of the world’s major indexes closed lower with energy stocks the biggest drag. Wall Street’s Nasdaq managed a better finish as biotechs gained but it still closed in the red.
The S&P/TSX Composite Index closed down 120.4 (0.92 per cent)
The Dow Jones closed down 162.5 (0.92 per cent)
Oil is trending lower (Brent $40.23, WTI $37.63 at 4.15pm)
Gold is trending lower (1074.10 at 4.15pm)
The loonie is valued at U$0.7359
BoC would consider negative interest rates
While the world gets ready for the Fed’s likely increase in interest rates next week Canada’s central bank is talking about further cuts. Bank of Canada governor Stephen Poloz told the Empire Club of Canada Toronto that the bank would consider using negative interest rates in the event of a major economic crisis. The measure is one of four unconventional monetary policies that the BoC would consider along with providing guidance on future interest rate moves; quantitative easing; and providing strategic funding to business.
Housing starts, permits increase
The housing market has seen a boost in the last two months according to new data. Housing starts increased in November to 211,916 units, up from 197,712 units in October according to CMHC. Meanwhile Statistics Canada reported that residential building permits increased by 15.5 per cent to $4.8 billion in October from a month earlier.
Bankers’ bonuses topped $12.5 billion in 2015
The amount that Canada’s Big Six banks set aside for bonuses increased to $12.5 billion this year, up from $12 billion in 2014, according to Bloomberg estimates. That is contrary to the trend of other major economies such as the US, where bonuses are expected to be flat; and the UK, with a 9 per cent decline forecast. Only Scotiabank has reduced its bonus funds.