TSX closes flat as economy falters
The main TSX index closed flat Friday as GDP data showed a contraction in October and Libyan output data rattled oil prices. Although oil ended the session higher, the energy sector was the only group of the TSX to close lower, while materials led the gains.
Wall Street ended its last session before Christmas slightly up, but essentially flat along with European markets. Asian indexes were generally lower.
The S&P/TSX Composite Index closed down 7.08 (0.05 per cent)
The Dow Jones closed up 14.93 (0.07 per cent)
Oil is trending higher (Brent $55.08, WTI $53.11 at 4.30pm)
Gold is trending higher (1132.90 at 4.30pm)
The loonie is valued at U$0.7383
Canadian economy turned negative in October
Real GDP was down 0.3 per cent in October as manufacturing and oil and gas extraction declined. Statistics Canada reported Friday that goods producing industries were down 1.3 per cent while service industries only managed a 0.1 per cent gain.
Manufacturers’ output was down 2 per cent, the largest decline in a single month since December 2013. Mining, quarrying, and oil and gas extraction were down 1.2 per cent; construction fell 0.5 per cent.
Retail trade was up 0.7 per cent and wholesale trade was up 0.6 per cent. Finance and insurance was down 0.5 per cent.
Ottawa’s budget widened in October
Figures from the federal finance department shows that Ottawa’s budget deficit widened in October from a year earlier as benefits and unemployment payments increased.
The deficit was $1.53 billion, up from $940 million in October 2015. Although revenue was up 11.3 per cent, the cost of government programs was up 15 per cent.