TSX closes lower despite GDP data, commodities
Canada’s economy grew by more than expected in November, but the news was not enough to boost the pessimistic tone for the equity market. Price gains for oil and gold also failed to lift the main TSX index above the water.
Half of the sectors did close higher, led by utilities and materials. The losses were led by IT and industrials.
Wall Street, except for the Nasdaq; along with European and Asian markets also closed lower.
The S&P/TSX Composite Index closed down 19.16 (0.12 per cent)
The Dow Jones closed down 107.0 (0.54 per cent)
Oil is trending higher (Brent $55.68, WTI $52.76 at 4.45pm)
Gold is trending higher (1212.20 at 4.45pm)
The loonie is valued at U$0.7685
Manufacturing leads economic growth
Canada’s economy grew 0.4 per cent in November with goods producers leading with a 0.9 per cent rise and reversing the sector’s 1 per cent loss in October.
Statistics Canada reported that the better-than-expected rise in GDP was the fifth consecutive month of gains. Along with manufacturing, there were gains for mining, quarrying, oil and gas extraction, and construction.
Services industries also gained with a 0.2 per cent rise led by finance and insurance, retail trade, and transportation and warehousing.
Freshii gains with first trading session
The first day of share trading for food chain Freshii was a success with $125 million raised as shares gained 72 cents each from the IPO price of $11.50.
Founder and CEO Matthew Corrin said that the brand expects to double its restaurant count over the next few years.
Producer prices up 0.4 per cent
Canada’s producer prices were up 0.4 per cent in December compared to the previous month, Statistics Canada said Tuesday.
Energy and petroleum prices led the rise, which was lower than a poll of experts expected according to Reuters. Only seven sectors gained with eight lower and six unchanged.