Stocks end higher but gold producers lose
Canada’s main stock index was one of the better performers among global markets Wednesday despite lower prices hitting gold miners and other resources. Oil prices gave some support following earlier losses.
Globally, stocks were mixed on oil and regional factors. Wall Street closed higher following the recent losing streak.
Underlying concern over the global economy is dominating the markets with oil prices volatile, major economies showing weakness and the unknown impact of Brexit.
The S&P/TSX Composite Index closed up 35.04 (0.24 per cent)
The Dow Jones closed up 39.45 (0.22 per cent)
Oil is trending higher (Brent $43.42, WTI $41.13 at 4.05pm)
Gold is trending lower (1364.40 at 4.10pm)
The loonie is valued at $0.7645
This could shake Canada’s financial system
Canada’s financial system could be plunged into crisis in the event of a major earthquake, a CD Howe Institute report said Wednesday.
The quake would have to be one resulting in losses of at least $30 billion but the impact would be similar to a bank meltdown with at least one insurance company failing. That would cause a ripple effect through multiple financial institutions.
The report was written by Nicholas Penn, a former OSFI chief, who notes that while there has been focus on minimizing risk in the banking system, there has not been any discussion regarding the fallout from a natural disaster.
Ontario agrees greater auto sector co-operation with Michigan
Officials in Ontario have signed a deal with counterparts in Michigan which will see co-operation in the promotion of the auto sector. The memorandum of understanding between Ontario’s Premier Kathleen Wynne and the governor of Michigan Rick Snyder means the province and state collaborating to "create new opportunities for investment, jobs and growth on both sides of the border."
Meanwhile, data released Wednesday show that Canadian sales of Ford vehicles were up almost 10 per cent in July compared to a year earlier. There were 29,778 vehicles sold and analysts expect 2016 to be another record-breaking year for the auto industry.