TSX closes higher despite Trump’s “America first” pledge
World markets were awaiting President Trump’s inauguration Friday and it came with a firm pledge to put “America first.” While concerns have been raised by those Canadian firms that rely on exports to the US, there were other elements in play to help boost the main TSX index.
Gold prices gained following the new president’s speech while oil prices were up 2 per cent, although a forthcoming check on output cap compliance was the main factor.
Canadian consumer price data also helped equities with consumer staples leading 9 of the 10 groups higher; materials and energy weren’t far behind.
Wall Street closed higher although there was not universal positivity about the president’s protectionist comments; gains were subdued.
European and Asian markets closed mixed before the inauguration speech.
The S&P/TSX Composite Index closed up 128.4 (0.83 per cent)
The Dow Jones closed up 79.05 (0.40 per cent)
Oil is trending higher (Brent $55.42, WTI $52.33 at 4.10pm)
Gold is trending higher (1207.70 at 4.10pm)
The loonie is valued at U$0.7505
Inflation higher but still below BoC target
Canadian consumer prices rose 1.5 per cent in the 12 months to December as gas prices gained 5.5 per cent to boost the transportation sector’s inflation.
Prices also gained in the shelter sector and clothes & footwear saw a small rise; food was less expensive.
Statistics Canada’s figures show that seven of the eight major components of the CPI rose and six provinces saw rising prices while two saw deceleration.
The gain to 1.5 per cent falls short of the Bank of Canada’s target of 2 per cent and was also below the 1.7 per cent expected by economists polled by Reuters.
Retail sales up again in November
November saw a fourth consecutive monthly rise in retail sales led by motor sales and parts, and gardening supplies.
The 0.2 per cent rise reported by Statistics Canada took the total spent to $45.2 billion in the month and taking into consideration price changes, volume of sales was up 0.7 per cent.
Amaya revises profit forecast after strong end to 2016
Canadian online gaming firm Amaya Inc. is expecting higher profits for its fourth quarter, revising upward its previous outlook.
The firm is now expecting to report profit of between U$364 million to $374 million, $20 million more than previously forecast. Earnings per share could be as much as $1.92.