TSX closes lower as energy stocks feel the pressure
The Toronto Stock Exchange reopened after the holiday weekend to declining oil prices which are now in a bear market with US crude slipping below $40. Energy firms and bank stocks felt the pressure.
World markets were generally weak with Asian markets unimpressed by Japan’s stimulus package and the Australian interest rate cut; Europe’s equities impacted by declining banking stocks following Friday’s stress tests; and Wall Street lower on falling oil prices and weak global sentiment.
The S&P/TSX Composite Index closed down 105.7 (0.73 per cent)
The Dow Jones closed down 90.74 (0.49 per cent)
Oil is trending lower (Brent $42.06, WTI $39.83 at 4.45pm)
Gold is trending higher (1371.00 at 4.45pm)
The loonie is valued at $0.7635
BMO Wealth Management reveals Canadian priorities
The top priority of 1 in 3 Canadians is to reduce or eliminate debt according to a new poll by BMO.
The lender’s wealth management division also revealed that investing and tax efficiency (24 per cent); saving more (23 per cent); budgeting (14 per cent); and spending on personal needs or goals (4 per cent) were the other main priorities.
Priorities change depending on life stages though with Boomers more likely to want to tackle their debt than Millennials (who want to save more).
A number of events were identified among respondents as barriers to saving more or invest. These include stock market losses, failed business ventures, divorce/separation and financial loss on a property sale.
More American tourists are heading north
The lower value of the Canadian dollar against the greenback is boosting tourism north of the border. Statistics Canada data shows that there was a 10 per cent rise in US visitors in 2015 following a decade of decline and in the first five months of 2016 there has been a 13 per cent rise.
Alberta’s payday lenders charge least
The payday lending rates in Alberta are now the lowest in Canada following the introduction of legislation limiting rates to 15 per cent per $100. Meanwhile, Prince Edward Island allows the highest rates in Canada at 25 per cent.
CBC reports that Alberta’s law has ended cycle of huge compounded debts that some borrowers found themselves with and has also prompted other financial institutions to launch short-term loan products as alternatives to payday lenders.