Daily Wrap-up: TSX closes higher despite oil slump

Daily Wrap-up: TSX closes higher despite oil slump

Daily Wrap-up: TSX closes higher despite oil slump TSX closes higher despite oil slump
It was another positive finish for the main TSX index Wednesday despite the 4 per cent drop in oil prices on a smaller-than-expected US stockpile draw.

Materials and financials were among the sectors which offset losses for energy stocks and even the dovish tone from the BoC as it announced a hold on interest rates failed to send the index into negative territory.

Elsewhere, Asian markets closed higher while European markets were broadly lower. The UK’s new prime minister is now in position and EU members and investors are waiting to see when the official countdown to Brexit will be triggered.

Wall Street closed mixed with the Nasdaq lower, the S&P500 flat and the Dow hitting a record high.
The S&P/TSX Composite Index closed up 16.13 (0.11 per cent)
The Dow Jones closed up 24.45 (0.13 per cent)
Oil is trending lower (Brent $46.61, WTI $45.11 at 4.50pm)
Gold is trending higher (1343.80 at 4.50pm)
The loonie is valued at U$0.7702
BoC cuts growth outlook
The Bank of Canada announced a hold on interest rates at 0.5 per cent Wednesday but sounded a cautious tone on Canada’s economic outlook. Governor Stephen Poloz said that growth for 2016 is expected to be 1.3 per cent, down from the 1.7 per cent predicted in April.

There is some better news ahead though. The BoC expects that exports and business investment are set to rise and inflation is set to return to 2 per cent in 2017.
There was a further warning though about the inflated housing markets of Vancouver and Toronto.
Surprise change at the top for Canadian Tire
Michael Medline has been replaced as CEO of Canadian Tire after less than two years in the job. His surprise replacement has been there before, Stephen Wetmore, the former CEO succeeded by Medline.

“Stephen transformed our Company during his previous tenure and laid the foundation for our current performance. We believe he is uniquely qualified to lead the Company through the increasing complexities of the new world of retail. His appointment as President and CEO is neither an interim, nor a short term, appointment,” company chairman Maureen Sabia told the Globe and Mail.

Wetmore spent 6 years as CEO at the firm from 2009.