TSX closes lower with China in focus
The first week’s trading of 2016 has started badly with further weak data from China setting the tone for global markets. The worse-than-expected non-manufacturing PMI data saw Asian markets close with losses led by a drop in excess of 7 per cent for Shanghai.
The poor sentiment spread through Europe and North America but the main Toronto index was one of the better performers despite closing almost 83 points lower. Financials and industrials were among the hardest hit by a global sell-off although gold miners tempered the losses in Canada as investors turned to the traditional safe haven.
Wall Street suffered larger losses with the Nasdaq off by more than 2 per cent.
The S&P/TSX Composite Index closed down 82.80 (0.64 per cent)
The Dow Jones closed down 276.1 (1.58 per cent)
Oil is trending mixed (Brent up at $37.39, WTI down at $36.91 at 4.35pm)
Gold is trending higher (1073.70 at 4.35pm)
The loonie is valued at U$0.7172
Canada’s manufacturing sector saw slower December
Figures released Monday by RBC show that Canada’s manufacturing activity was down in December for the fifth consecutive month. The sector was down to 47.5 in December from 48.6 in November, indicating increased contraction. Export orders were showing better form as the lower value of the Canadian dollar helped international sales.
Lululemon could be sold in 2016 says analyst
The founder of Belus Capital Advisors predicts that Canada’s Lululemon will be sold this year with a US retailer likely to be the new owner. Retail analyst Brian Sozzi made his prediction on thestreet.com and noted that it may be a necessary move to push the Canadian firm into a truly global position. Sozzi believes that VF Corp could be a potential match, having transformed the Timberland brand which it acquired in 2011.
Canada’s top bosses have already earned an average worker’s annual pay
The top CEO’s in Canada had earned the average Canadian worker’s annual salary by lunchtime Monday! The Canadian Centre for Policy Alternatives released a study which looked at salary data for 100 best paid bosses from TSX-listed firms. Based on average 2015 earnings (including bonuses and stock options) of $8.98 million, it meant that the CEOs had earned the $48,636 national average wage by 12.18pm.