TSX closes higher on Europe, China
The main sectors of the TSX’s main index closed higher Friday with Europe was in focus worldwide as markets digested the words of ECB president Mario Draghi that hinted that the central bank would consider additional stimulus at its December meeting.
The news boosted markets in Asia with the major indexes closing higher and after those markets closed there was news from the Chinese central bank; a further cut in interest rates.
China’s rate cut added to the feel-good factor in Europe as the ECB and corporate earnings helped the major indexes close around 2 per cent higher.
Wall Street gains were led by the Nasdaq which surged more than 2 per cent on tech earnings with Alphabet, Microsoft and Amazon all having reported their quarterly earnings after the previous session closed.
The S&P/TSX Composite Index closed up 75.55 (0.54 per cent)
The Dow Jones closed up 157.5 (0.90 per cent)
Oil is trending lower (Brent $47.94, WTI $44.64 at 4.35pm)
Gold is trending lower (1164.40 at 4.35pm)
The loonie is valued at U$0.7588
Inflation misses BoC target again
For the fourth month in a row the consumer price index missed the Bank of Canada’s 2 per cent inflation target with a 1 per cent rise for the 12 months to September following a 1.3 per cent gain in August. Statistics Canada reported that the CPI was pushed lower once again by gasoline prices which dropped 18.8 per cent in the 12 month period to September following a 12.6 per cent decrease in August. Prices were higher for most goods though; food up 3.5 per cent, driven by fresh vegetable prices; recreation, education and reading was up 2.5 per cent, driven by higher traveller accommodation costs; clothing and footwear up 1.2 per cent.
Another Canadian bank talks of job cuts
Following this week’s news that TD Bank is laying off some of its staff across Canada and the US, Scotiabank looks like following suit. CBC News reports that the bank is to close some of its regional offices and consolidate staff at two hubs in Toronto. The exact number of roles affected are not yet known but are likely to be a few hundred. As with TD, the Scotiabank announcement is despite the bank making large profits in the third quarter.