Oil rebounds on Iran deal, markets higher
Stock markets in North America and Europe closed higher Tuesday as hope that the Greek bailout deal will endure and a new deal with Iran lifted sentiment. That’s despite a leaked IMF document which says that Greece needs more than the Eurozone is offering and that the country will not have a stable economy for decades. The agreement reached on Iran’s nuclear plans has helped stabilize oil prices and boost energy stocks as it is likely to be the second half of 2016 before the country’s oil exports take effect once sanctions are lifted. Asian markets closed mixed earlier in the day.
The S&P/TSX Composite Index closed up 66.18 (0.46 per cent)
The NYSE closed higher (Dow up 75.90 / 0.42 per cent)
Oil is trending higher (Brent $58.38, WTI $52.88 at 4.35pm)
Gold is trending lower
The loonie is valued at U$0.7847 (4.35pm)
Analyst forecasts that banks won’t follow a BoC cut
If Stephen Poloz announces a cut in interest rates Wednesday many borrowers will be hoping that the banks follow suit. That may be optimistic says CIBC World Markets economist Robert Sedran. In a client note he wrote that he did expect a cut in banks’ lending rates but not the full 25 basis points that the BoC is most likely to cut. Sedran believes the banks will reduce rates to borrowers by 10 basis points (0.10 per cent).
Canadian homes hit record prices
Home prices in Canada hit a record high in June according to the Teranet-National HPI. The data of resales of single-family homes showed a 1.4 per cent rise in the month and 5.1 per cent year-over-year. While Toronto and Vancouver make up 54 per cent of the index there were price increases in 7 of the 11 major markets with Halifax, Winnipeg and Quebec City declining and no change in Edmonton.
Harper announces new free trade deal with Ukraine
Canada and Ukraine now have a free trade deal. Prime Minister Stephen Harper’s announcement Tuesday said that the deal, which will remove almost all import duty between the two countries, is “another milestone in the important relationship.” The statement says that the stronger commercial ties between Canada and Ukraine will create jobs.
Match Group goes fishing in Canada
US dating firm The Match Group has offered U$575 million for Canadian rival PlentyOfFish. Match’s parent IAC is planning for an IPO for its online dating business which includes Match.com and Tinder. PlentyOfFish has a user base of 90 million worldwide.