TSX closes lower on oil, weak risk appetite
Oil prices reversed Thursday while investors backed away from risk amid turbulent conditions.
Crude prices dropped more than 1 per cent as analysts weighed data showing an increase in stocks at the Cushing storage facility despite the shutdown of a section of TransCanada’s Keystone pipeline.
Equities gained in Asia, which avoided the lower oil prices but will react in the next session; only Shanghai closed with losses.
European indexes closed lower with oil and financials the main drags.
The S&P/TSX Composite Index closed down 81.02 (0.61 per cent)
The Dow Jones closed down 174.1 (0.98 per cent)
Oil is trending lower (Brent $39.58, WTI $37.45 at 4.35pm)
Gold is trending higher (1242.90 at 4.35pm)
The loonie is valued at U$0.7614
Oil industry sees worst 2-year span since 1947
The oil industry has seen the worst decline in capital investment in a two-year period since 1947. The Canadian Association of Petroleum Producers said Thursday that spending in the sector has dropped $50 billion since 2014, down 62 per cent from two years ago. Two-thirds of the oil wells drilled in Western Canada have been lost CAPP said.
TD says jobless rate could rise
Toronto-Dominion Bank says that Canada’s jobless rate could rise despite economic growth. While it believes there may well be gains for Ontario, Quebec and BC as the economy grows between 2.3 and 2.4 per cent this year in those provinces.
However, there is no guarantee of corresponding gains for jobs and the wider labour market could prove problematic. TD’s report says that if weak prospects in the oil producing provinces mean large numbers of interprovincial migrants seeking work in the stronger regions, it could lead to higher unemployment in those better-performing provinces.
Foreign condo ownership increased in 2015
Data from the Canada Housing and Mortgage Corp. shows a rise in foreign ownership of condos in Toronto and Vancouver during 2015. The report reveals that levels of ownership are low at 3.3 per cent for Toronto and 3.5 per cent for Vancouver. However, for condos built in the first half of this decade the rates are 8.7 per cent for Toronto and 6 per cent for Vancouver.