TSX closes higher as oil jumps 2 per cent
Oil prices are on the rise currently, buoyed by optimism that an OPEC output cap, coupled with US government data showing a larger-than-expected drop in stockpiles.
The energy sector together with materials saw the largest gains on the main TSX index Wednesday but all but industrials and healthcare closed higher.
Wall Street also ended the session in positive territory along with Europe and Asia. Oil prices together with stronger Chinese GDP data helped the gains.
The S&P/TSX Composite Index closed up 88.24 (0.60 per cent)
The Dow Jones closed up 40.68 (0.22 per cent)
Oil is trending higher (Brent $52.53, WTI $51.38 at 4.10pm)
Gold is trending higher (1270.20 at 4.10pm)
The loonie is valued at U$0.7616
Poloz was close to cutting interest rates
The Bank of Canada decided to hold interest rates at 0.5 per cent Wednesday but it was a close call.
In his opening statement to journalists, BoC governor Stephen Poloz said that the outlook for the economy had slipped and factors such as oil prices, exports and household debt were concerns.
While global issues play a part in the overall picture, Mr Poloz said that the shortfall in the economy that is structural rather than cyclical may be greater than previous thought.
“Governing Council actively discussed the possibility of adding more monetary stimulus at this time, in order to speed up the return of the economy to full capacity,” the governor said.
He noted that government action such as new mortgage rules are expected to ease some of the concerns of the bank and concluded that the Council “decided to leave our key policy interest rate unchanged, as we judged that the balance of risks at present are still within the zone for which the current policy setting remains appropriate.”
Enbridge cuts 370 Canadian jobs
Around 370 Canadian staff have lost their jobs at Enbridge together with another 160 in the US.
The Calgary-based firm said that it is cutting 5 per cent of its workforce following a strategic review which began earlier this year and follows a previous 5 per cent cut announced almost a year ago.