TSX closes higher, oil lower despite OPEC freeze
The Toronto Stock Exchange got back to work Tuesday and managed to close higher despite decline for oil prices. Consumer brands and financials helped outweigh falls for energy and gold mining stocks as commodities came under continued pressure. Gold prices are declining as data shows growing US stocks; Goldman Sachs advised clients to sell.
Even a deal between four OPEC members, including the Saudis, failed to lift oil prices.
Along with Toronto’s main index the three Wall Street majors closed higher and Asian markets had ended their session with gains, especially Shanghai. Europe was less optimistic with London bucking the downward trend.
The S&P/TSX Composite Index closed up 173.7 (1.40 per cent)
The Dow Jones closed up 222.6 (1.39 per cent)
Oil is trending lower (Brent $32.32, WTI $29.11 at 4.25pm)
Gold is trending lower (1200.50 at 4.25pm)
The loonie is valued at U$0.7201
Warning over lack of retirement savings
Many Canadians will enter retirement with inadequate funds according to a new report. The Broadbent Institute said Tuesday that half of Canadian couples aged 55-64 have no employer pension and a fifth of those do not have savings of a level that will adequately supplement government benefits. Rick Smith, the institute’s director warned that there is a “retirement-income crisis” and called for immediate action from Ottawa.
Home prices up 17 per cent
The national average home price soared 17 per cent in 2015 with existing home sales up 8 per cent. Data from the Canadian Real Estate Association shows that Vancouver’s average sales price increased 32.3 per cent to almost $1.1 million while in Toronto it was up 14.2 per cent to $631,092.
Bombardier’s C Series demand will increase says engine manufacturer
The boss of the company that makes engines for Bombardier’s C Series jets believes that demand will increase for the airplanes. Pratt & Whitney president Bob Leduc was asked about the future of Bombardier at the Singapore Airshow and said that he didn’t think the Canadian government would allow it to fail. He said that the C Series is a good product and will sell, eventually.
Manufacturing sales up again
Canada’s manufacturing sales were up for the second consecutive month in December, the latest figures released by Statistics Canada. The 1.2 per cent gain to $51.6 billion was driven by motor vehicle and wood products industries which represented more than half of the increase. Chemical products, miscellaneous products, ship and boat building, as well as other transportation equipment also posted higher sales, which accounted for almost one-third of the overall increase. Lower sales of petroleum and coal products partly offset the gains. Overall sales in 2015 were down 1.5 per cent though, the first decline since 2009.