Oil price jump helps TSX to strong finish
Oil prices were in focus again Monday as analysts weighed the possibility that OPEC members may vote to change policy when they meet Friday. Prices of crude increased for a time before settling lower as the markets closed on a Reuters’ survey that showed that OPEC has been continuing to pump near-record levels during November.
The main index of the Toronto Stock Exchange advanced as energy stocks gained among the 7 of the 10 sectors on the index.
Wall Street got back into the flow following a short post-Thanksgiving session, closing lower but ending two months of gains overall.
Asian and European markets closed mixed with the latter eyeing this week’s meeting of the ECB.
The S&P/TSX Composite Index close up 101.6 (0.76 per cent)
The Dow Jones closed down 78.57 (0.44 per cent)
Oil is trending mixed (Brent down at $44.55, WTI up at $41.73 at 4.55pm)
Gold is trending higher (1064.00 at 4.55pm)
The loonie is valued at U$0.7489
Trade deficit lower in Q3
Canada's current account deficit (on a seasonally adjusted basis) narrowed $0.4 billion in the third quarter to $16.2 billion. Figures from Statistics Canada show that a lower deficit on trade in goods was partially offset by a higher deficit on cross-border investment income flows.
In the financial account (unadjusted for seasonal variation), transactions in direct investment liabilities, largely foreign acquisitions of Canadian companies, led the inflows of funds into the economy.
The goods surplus with the United States rose by $0.5 billion despite lower exports of crude petroleum. The trade deficit with all other countries was down by $0.8 billion. One of the main contributors was trade with India, where the goods surplus expanded by $0.6 billion on higher exports.
CP to fight lawsuit over Lac-Megantic
Quebec has brought a lawsuit against Canadian Pacific for alleged negligence surrounding the Lac-Megantic train fire in which 47 people died. The Globe and Mail reports that CP is accused of negligence in relation to its handing over of the tank cars to Montreal, Maine and Atlantic Railway. Canadian Pacific said Monday that it intends to “fully defend itself” in court.
Study says corporate tax cuts failed to boost economy
A study of 90 years of data by the Canadian Centre for Policy Alternatives concludes that tax cuts for corporations that were intended to boost the economy failed to do so. That’s because instead of using the money they saved from the tax man to invest in jobs and growth, the businesses instead stockpiled the cash. Corporate taxes have been cut by successive governments over the years and now stand at 15 per cent compared to the 36 per cent rate of the 1980s.