Oil drops, US jobs data awaited
The main TSX index closed higher Thursday despite a further day of decline for oil prices, which ended the session 3.45 per cent lower.
Gold prices gained and the overall materials sector was up 2.6 per cent, leading nine of the ten sectors that advanced. The rise for gold came as US manufacturing data fell short of expectations, cutting the odds for a September interest rate rise. Jobs data in the next session could sway the decision.
Wall Street closed slightly higher ahead of Fridays jobs data while Europe and Asian markets closed mostly lower despite some positive indicators regionally.
The S&P/TSX Composite Index closed up 85.96 (0.59 per cent)
The Dow Jones closed up 18.42 (0.10 per cent)
Oil is trending lower (Brent $45.76, WTI $43.51 at 4.35pm)
Gold is trending higher (1317.10 at 4.35pm)
The loonie is valued at U$0.7636
Pension funds partner on real estate portfolio
The Canadian Pension Plan Investment Board will partner with the real estate division of the Ontario Municipal Employees Retirement System to co-own a portfolio of offices in Calgary and Toronto.
The deal will see CPPIB paying $1.2 billion for a 50 per cent stake in Oxford Properties Group’s seven properties. Oxford will continue to manage the portfolio.
Canadian interest rates unlikely to change soon says poll
As analysts and investors worldwide focus on the likelihood of a US interest rate rise, a poll of economists has found little expectation of anything similar from the Bank of Canada until 2018.
The Reuters survey of 35 experts was certain that there would be no change from the 0.5 per cent rate this month and their longer-term outlook suggests that the bank will wait until the first quarter of 2018 before a hike.
Previous polls had suggested there would be a rise in the last quarter of 2017.
Budget watchdog warns that child benefit may be erased
Ottawa’s new child benefit will lose its value over time as it has not been linked to inflation.
The Parliamentary Budget Officer released a report Thursday which says that the three benefits that the new one has replaced were inflation-linked. The change means that families will slowly become worse off.
The PBO report shows that 91 per cent of families will be eligible to receive the benefit in 2016 but in 5 years that will have dropped to 86 per cent as incomes rise to take some families above the threshold.