TSX closes higher despite GDP
The Toronto Stock Exchange managed to head into the Canada Day break in positive territory despite Tuesday’s news of economic weakness in April. As world markets outside of Europe managed to shrug off Greek debt worries, Asian and North American indexes closed higher. The deadline for Greece to make its U$1.8 billion loan payment to the IMF is midnight local time but it is not expected to meet the payment, making it the first developed economy in history to default on an IMF loan.
The S&P/TSX Composite Index closed up 63.18 (0.44 per cent)
The NYSE closed higher
Oil is trending higher (Brent $63.46, WTI $59.29 at 4.30pm)
Gold is trending lower
The loonie is valued at U$0.8010 (at 4.30pm)
GDP declined in April
Canada’s GDP figures from StatsCan showed a 0.1 per cent decline from March to April with energy and mining sectors down 2.6 per cent. It was not the only sector to shrink though as goods production was also down, by 0.8 per cent; utilities 0.7 per cent; finance and insurance 0.6 per cent; manufacturing output 0.2 per cent; and construction 0.1 per cent. The sectors showing growth were: wholesale trade up 1.6 per cent; accommodation and food 1.2 per cent; and the public sector 0.2 per cent. The figures have already added to talk of recession and an interest rate cut.
Pension plan picks up Cenovus royalties for $3.3 billion
Cenovus is selling its portfolio of oil royalties in Western Canada to Ontario Teachers’ Pension Fund. The agreement will see the fund paying $3.3 billion for Herald Royalty which holds royalties in Alberta, Saskatchewan and Manitoba.
First Nations road could be built with Kickstarter campaign
An all-weather road planned for Shoal Lake 40 First Nation could be built using crowdfunding. The reserve, which was cut off from the mainland around 100 years ago by a reservoir supplying Winnipeg with water, will be connected by a new road if funding is secured. The federal government has not committed to contribute and so a Kickstarter campaign aims to plug the $10 million shortfall. So far $11,000 has been pledged since Monday.