Oil plunges almost 4 per cent as OPEC hits record output
The TSX was closed Monday but it was no holiday for world markets as oil prices plunged almost 4 per cent following a report that OPEC producers hit new record high output. US crude fell below $40 for a time before rebounding slightly.
Wall Street indexes closed mixed with the Dow and S&P ending the session lower while the Nasdaq closed up 0.43 per cent.
Asian markets closed mostly higher, before the worst of the oil slump, although China was lower as PMI data disappointed.
European markets closed lower.
The S&P/TSX Composite Index was closed
The Dow Jones closed down 27.72 (0.15 per cent)
Oil is trending lower (Brent $42.24, WTI $40.05 at 4.55pm)
Gold is trending higher (1359.50 at 4.55pm)
The loonie is valued at U$0.7621
Investor sentiment jumps highest for 5-years
Canadian investors’ sentiment had its highest jump since 2011 according to a new survey from Manulife.
The poll was conducted in May and released Monday. It shows that nearly all investment types are viewed positively by investors, led by stocks and fixed income which both jumped 10 points in the 6-month period. The overall index was up 6 points.
"Optimism is growing amongst Canadians when it comes to investing," said Philip Petursson, Chief Investment Strategist, Manulife Investments. "As oil prices have rebounded, so has the Canadian equity market and the Canadian dollar. Investor sentiment seems to be feeding off these improvements."
Investors in Quebec lead the country in achieving financial goals, the report shows that 60 per cent are on track or ahead. The national average is 50 per cent. "We're seeing some major differences in Quebec compared to the rest of the country," said Petursson. "The increase in sentiment among Quebecers may be related to the improvements in the province's economy and labour market."
Hoteliers benefit as loonie falls
Canada’s hotel industry is booming as the Canadian dollar makes the country even more attractive to visitors. Vancouver and Toronto are leading the rise in occupancy rates and a corresponding increase in room prices.
Real estate firm CRBE says that the hotel sector is gaining in most areas although Calgary and Edmonton are seeing lower occupancy rates due to the recession and additional hotels that have opened in the past year.