TSX closes near 4-week high despite oil decline
World markets closed mixed Monday as investors took differing views post-Brexit while oil prices reversed following recent gains.
The main TSX index gained more than 1 per cent to hit a near 4-week high with resources gaining. Gold, silver and energy stocks all gained along with the heavily-weighted financials sector.
Elsewhere, Wall Street was closed for US Independence Day but stock futures advanced along with major indexes in Asia which are considered less exposed to the Brexit fallout.
European markets closed mostly lower as concern over the economies of the UK and EU members took centre stage.
The S&P/TSX Composite Index closed up 194.3 (1.38 per cent)
The Dow Jones was closed for Independence Day
Oil is trending lower (Brent $50.04, WTI $48.76 at 4.50pm)
Gold is trending higher (1353.50 at 4.50pm)
The loonie is valued at U$0.7778
BoC warns that business sentiment is subdued
A survey of business sentiment by the Bank of Canada shows that expectations have weakened for the year ahead. The poll of senior management in 100 Canadian firms shows soft activity may be ahead with those connected to the energy sector particularly concerned about their short-term future. Firms that export to the US (except those in energy) are more optimistic although the survey was carried out before the Brexit vote.
Manufacturing sector appears to have slowed
RBC’s manufacturing PMI for June, released Monday, shows a weaker manufacturing sector than the previous month (from 52.1 down to 51.8). A reading above 50 is still indicative of growth but the latest figure is the weakest since March.
Although there was a notable impact from the Fort McMurray wildfires, RBC says that there is evidence that slower export growth is also a key factor. Decline was registered in the leading manufacturing provinces of Ontario and Quebec while the rest of Canada saw growth in the PMI.