Resources, Valeant drag TSX down 1 per cent
The main index of the Toronto Stock Exchange closed down more than 1 per cent Monday as the all-too-familiar news of oil prices declining hit energy stocks. The market was also dragged down by Valeant Pharmaceutical shares which dropped 5 per cent despite a conference call with analysts designed to reassure them about the recent allegations.
Wall Street was also lower as US crude dropped 2 per cent. The Nasdaq was the lone star of the three main indexes, managing to post a minor gain by close of play.
Asian markets had closed mixed earlier as China’s central bank’s surprise interest rate cut buoyed some markets while others were unimpressed.
Europe closed mixed as regional corporate earnings took centre stage.
The S&P/TSX Composite Index closed down 162.8 (1.17 per cent)
The Dow Jones closed down 23.65 (0.13 per cent)
Oil is trending lower (Brent $47.38, WTI $43.79 at 4.25pm)
Gold is trending higher (1163.70 at 4.25pm)
The loonie is valued at U$0.7595
Canadian housing market to moderate says CMHC
The Canada Mortgage and Housing Corporation said Monday that the housing market is set to moderate in the coming years. Chief economist Bob Dugan said that in recent months the heat in the market in Ontario and BC was offsetting weakness in the oil-producing provinces. However he does not expect that to continue. For 2015 the number of housing starts will be slightly higher than the agency’s previous forecast in May Dugan said; with 186,900 most likely. For 2016 he says that starts will be down to 178,150 with 173,650 in 2017. Prices are expected to have gained 7.2 per cent this year before a sharp drop in growth to 1.3 per cent in 2015 and 1.4 per cent in 2017.
Canadians may cut back this Christmas
In what has been a difficult year for many in the retail sector there was more bad news Monday as an analyst predicted that Canadian shoppers would be cutting back on their Christmas spending this year. Ed Strapagiel said in his annual report that it expects a slowdown in festive spending as wage growth has not picked up but household debt has. Auto sales have done well this year but in the last few months most retail sectors have seen a slowing of sales which may not recover for the holiday season.
BoC deputy governor to retire
The Bank of Canada has announced that Deputy Governor Agathe Côté will retire at the end of January 2016. She was appointed to the role in July 2010 with responsibility for overseeing the Bank’s analysis of domestic economic developments in support of monetary policy decisions.