TSX begins the week with a triple-digit jump
It could all change by the end of the week, but markets believe that the UK won’t vote to leave the EU; with the potential for a range of impacts, not least a chance that region could be tipped into recession.
With the expectation of the status quo being maintained, oil prices and equities gained Monday with the main TSX index rising in triple digits.
Asian and European markets closed higher, the latter up around 3 per cent; Wall Street also closed with gains.
Commodities have also been boosted with oil up almost 3 per cent and metals including copper and silver higher. Gold was slightly lower at the close of the session though.
The S&P/TSX Composite Index close up 113.4 (0.82 per cent)
The Dow Jones closed up 129.7 (0.73 per cent)
Oil is trending higher (Brent $50.40, WTI $49.16 at 4.55pm)
Gold is trending lower (1293.00 at 4.55pm)
The loonie is valued at U$0.7807
Housing crash could cost banks $12 billion, but they can cope
If Canada’s housing market was to crash, the big banks would lose out by $12 billion according to Moody’s.
The ratings agency published a report Monday assessing the risk to the big banks if there was a sharp drop in house prices in Vancouver and Toronto of 35 per cent.
Despite being 10 percentage points higher than the drop in prices which caused the US housing crash at the end of the last decade, Moody’s believes that Canada’s largest lenders could withstand the impact.
The report also acknowledged that the banks’ mortgage portfolios are of higher quality than those that crippled lenders in the US.
Wholesale trade turned positive in April
The latest wholesale trade data from Statistics Canada shows a slight rise following two months of decline. Three out of seven subsectors saw gains and the overall figure of $54,8 billion was 0.1 per cent higher than the previous month. Sales were up 0.2 per cent in volume terms.
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