Oil prices up 4 per cent but TSX closes flat
Energy firms were lifted Thursday by a jump in oil prices of more than 4 per cent and theirs was strongest sector of the session. Utilities and financials managed more modest increases.
Already-rising oil prices spiked as US stockpile data surprised analysts (who were expecting a slight rise) by declining by 14.5 million barrels, the largest level since 1999.
Elsewhere, the three main Wall Street indexes closed lower along with most European markets following a disappointing speech from the European Central Bank’s Mario Draghi. With data from the EU mixed, the markets were hoping for increased stimulus but it was not to be.
Asian markets had closed mixed earlier in the day.
The S&P/TSX Composite Index closed up 6.51 (0.04 per cent)
The Dow Jones closed down 46.23 (0.25 per cent)
Oil is trending higher (Brent $49.73, WTI $47.37 at 4.40pm)
Gold is trending lower (1341.60 at 4.40pm)
The loonie is valued at U$0.7734
Canada’s growth is uneven says BoC deputy governor
Bank of Canada deputy governor Timothy Lane spoke to the Thunder Bay Chamber of Commerce in Ontario Thursday and noted that growth is “uneven”.
He referred to a “two speed economy” with the commodity price shock still weighing in some areas while the two hottest housing markets are exceptional.
He also highlighted weak exports despite support from the growing US economy, the slow labour market and low investment, especially in the energy sector.
On a more positive note, Mr Lane said that household spending is holding up despite weakness in the energy sector.
House prices up 0.4 per cent as Toronto leads
The combined Toronto-Oshawa housing market boosted the nationwide home price index in July Statistics Canada has reported. Victoria (0.8 per cent) and Hamilton (0.7 per cent) were also up while Vancouver gained 0.6 per cent. The national rise was 0.4 per cent, double that expected by a Reuters’ poll of experts.