TSX closes higher despite growth downgrade
Toronto’s main stock index closed higher Friday as world markets digested US jobs data which came in lower than expected. Oil prices dipped and then rebounded but ended the session lower over the week after 4 week-end gains.
The Alberta wildfires continue to dominate conversations across Canada and economists at RBC added a new element to the disaster by downgrading its forecast for Canada’s growth this month. If oil shutdowns continue for 2 weeks it would cut GDP by 0.5 per cent for May the economists said. BMO analysts went further and cut their second-quarter growth forecast to zero based on the Fort McMurray fire and today’s Canadian jobs data.
Wall Street closed higher while Europe and Asia were mixed.
The S&P/TSX Composite Index closed up 69.46 (0.51 per cent)
The Dow Jones closed up 79.85 (0.45 per cent)
Oil is trending higher (Brent $45.34, WTI $44.64 at 4.15pm)
Gold is trending higher (1290.50 at 4.15pm)
The loonie is valued at U$0.7739
Canadian jobs down 2,100, unemployment rate unchanged
There were 2,100 fewer jobs in Canada in April compared to March, while the unemployment rate held steady at 7.8 per cent. Statistics Canada reported that the year-over-year new jobs figure was up 0.8 per cent or 144,000 jobs.
Provincially, employment declined in Alberta and Manitoba, while it increased in British Columbia, Newfoundland and Labrador, and New Brunswick.
Enbridge asks for Northern Gateway permit extension
Enbridge hopes that regulators will give it more time to engage with those communities in BC who are opposed to the Northern Gateway pipeline. If the 3 year extension is not granted by the National Energy Board then Enbridge would have to start construction of the pipeline, or the Kitimat terminal before the existing permit expires later this year.