Trump effect fades, markets tumble
Equities, commodities and currencies lost steam Thursday as profit-taking resumed following a Trump rally.
Toronto’s main stock index slipped into the red as oil and gold prices fell; materials and energy sectors were lower along with utilities, telecoms and consumer staples. The other five TSX sectors gained, led by a strong showing for industrials.
Wall Street closed mostly higher with the Dow hitting an all-time high and the S&P500 also gaining while the Nasdaq was down almost 1 per cent.
European indexes closed lower while Asian markets had closed higher earlier.
The S&P/TSX Composite Index closed down 15.73 (0.11 per cent)
The Dow Jones closed up 218.2 (1.17 per cent)
Oil is trending lower (Brent $45.63, WTI $44.31 at 4.35pm)
Gold is trending lower (1258.90 at 4.35pm)
The loonie is valued at U$0.7419
CPPIB reports healthy gains from investments
The Canada Pension Plan Investment Board reported gains of 4.8 per cent on its investments in its second fiscal quarter Thursday, amounting to more than $300 billion.
The board bought new assets in the quarter including insurer Ascot Underwriting Holdings and a portfolio of office buildings.
Despite the gains, the fund’s statement stressed that its focus is longer-term investment yields.
Canadian debt up again
Canadian household debt is up 2.3 per cent in the third quarter of 2016 compared to a year ago, to an average $21,686 excluding mortgages.
TransUnion’s latest debt report shows a 2 per cent increase in credit card debt to an average $3,954 while balances on instalment loans were up $2,200 to an average $24,782.
Delinquency rates nationally are not significantly higher than a year ago at 2.7 per cent (compared to 2.62 per cent); however, Alberta (13.4 per cent) and Saskatchewan (11.9 per cent) rates rose sharply.