Oil slumps 3 per cent, Gold down ahead of jobs
Wednesday was a tough session for the markets as equities came under pressure from declining energy and mining stocks.
Oil prices were down more than 3 per cent as US stockpiles gained while the gasoline drawdown was lower.
Meanwhile, gold slipped to a 2-month low as fears of the impact of US interest rates weighed. This was exacerbated by ADP jobs data which exceeded forecasts and set the stage for official non-farm payroll figures due Friday.
The main TSX index closed lower with materials and healthcare the biggest drags. Consumer staples, industrials and consumer discretionary were the only sectors rising.
Wall Street and Europe also ended the session lower while Asian markets were mainly lower with Japan and China higher.
The S&P/TSX Composite Index closed down 87.70 (0.60 per cent)
The Dow Jones closed down 53.42 (0.29 per cent)
Oil is trending lower (Brent $47.04, WTI $44.83 at 4.40pm)
Gold is trending lower (1311.80 at 4.40pm)
The loonie is valued at U$0.7628
GDP down in second quarter, rebounds in June
Canada’s GDP was down 0.4 per cent in the second quarter following a 0.6 per cent increase in the first quarter.
The data from Statistics Canada shows the largest quarterly decline in GDP since the second quarter of 2009. The oil industry was the largest drag on GDP, especially following the shutdowns caused by the Alberta wildfires. Excluding that sector, the economy grew 0.1 per cent.
As expected, there was a better story for June with a rise of 0.6 per cent, exceeding many analysts’ expectation for 0.4 per cent.
National Bank profit up 6 per cent
The last of Canada’s big banks to report profits completed a run of increases. National Bank reported a 6 per cent rise in profit from the same period of 2015, to $478 million ($486 million adjusted excluding one-time items).
The amount set aside to cover bad loans, largely from the energy sector, was $45 million, down from $65 million in the previous quarter.