TSX closes higher, commodities dip
Oil prices declined following some earlier gains Thursday as US data showing a stronger draw was overshadowed by OPEC members deciding against an output cap.
Toronto’s main stock index managed to close with gains, tracking Wall Street’s rise ahead of US jobs data Friday which could help sway the Fed’s interest rate decision.
European equities closed mixed following the ECB’s latest policy meeting. Interest rates were left unchanged and the Eurozone’s growth and inflation forecasts were slightly higher.
Asian equities closed mostly higher although the Nikkei was notably lower as the yen strengthened against the US dollar.
The S&P/TSX Composite Index closed up 73.45 (0.52 per cent)
The Dow Jones closed up 48.89 (0.27 per cent)
Oil is trending lower (Brent $49.82, WTI $48.95 at 4.30pm)
Gold is trending lower (1213.20 at 4.30pm)
The loonie is valued at U$0.7628
Canadian Western latest bank to announce profit drop
Provision for bad loans has hit profits at Canadian Western Bank. Like other big banks CWB is setting aside a larger fund to cover defaults, especially from the energy sector. In CWB’s case this is almost $40 million for the second quarter of 2016, compared to $7 million in the same period of 2015.
Profits dropped 37 per cent to $32.2 million but without the provisions for bad loans there was an 8 per cent gain year-over-year to $84.5 million on an adjusted basis.
Housing prices may be increased by expectation says BoC
The Bank of Canada said Thursday that it is concerned that house prices in Vancouver and Toronto are being boosted by homebuyers’ expectation that prices will keep rising.
The situation may be a self-fulfilling prophecy with buyers – including investors - wanting to get into the market high but their keenness to buy only serving to increase the prices.
BoC deputy governor Lawrence Schembri said that "people should not be buying housing based on the expectation these prices are going to continue.”