Strong gains for TSX as oil ends on a high
It was the start of December when US oil was last above $40 at the end of a session; it happened again Thursday to boost equities as energy firms led the gains.
North American markets saw the greatest effect while world markets were mixed following the Fed’s announcement in the previous session and regional issues.
Asian markets closed their session mainly higher while European indexes closed broadly lower with London bucking the trend as investors weighed the Bank of England’s interest rate freeze and concern expressed over the potential ‘Brexit’ vote.
Wall Street closed higher.
The S&P/TSX Composite Index closed up 143.2 (1.06 per cent)
The Dow Jones closed up 155.7 (0.90 per cent)
Oil is trending higher (Brent $41.46, WTI $40.32 at 4.55pm)
Gold is trending higher (1258.40 at 4.55pm)
The loonie is valued at U$0.7699
Trudeau calls for more variety in fiscal measures
Justin Trudeau said Thursday that Canada needs to use a greater variety of measures to handle the economy. Speaking to Bloomberg TV, the Prime Minister said that monetary policy alone is becoming less effective: "I think we're approaching the limit of the impact of monetary policy alone."
On the subject of the Canadian dollar, currently valued at around 70 cents US, Mr. Trudeau noted that it tends to “bounce around a bit” but that we are currently in a range that is “comfortable.”
Wholesale trade flat in January
Statistics Canada reports that wholesale sales were unchanged at $57.0 billion in January as gains in the machinery, equipment and supplies subsector were offset by lower sales in the motor vehicle and parts subsector. In volume terms, wholesale sales decreased 0.2 per cent.
There were lower sales recorded in six provinces (around 69 per cent of all sales.) These declines were mostly offset by gains in British Columbia, Quebec and Manitoba.
Valeant creditors fear U$30 billion debt default
Shares in Valeant Pharmaceuticals have slumped in both Toronto and New York this week as the company announced it was unable to meet Tuesday’s deadline for filing financial statements with regulators. The Financial Post says that some of the firm’s creditors are seeking to re-arrange debt terms which could mean higher costs and debt-levels for the firm. Valeant must file financial details by March 30 or risk lenders accelerating repayment of debts after a further 30 days.