TSX ends higher as Fed delays rate hike
The long-awaited announcement from the Fed arrived Wednesday and the decision not to increase interest rates will be digested by world markets in the next session.
Toronto’s main index closed higher, outperforming its Wall Street counterparts, as markets relaxed on the Fed news. Gold producers were pleased with the news as the metal’s price gained; and sentiment was further buoyed by better-than-expected news for Canada’s manufacturing sales.
Wall Street gained after the Fed but the 3 main indexes closed with slim losses.
Asian and European markets closed their sessions mostly higher, before the Fed, but with expectation that there would be a freeze on interest rates. Meetings of the BoJ and the Bank of England will be watched Thursday.
The S&P/TSX Composite Index closed up 39.22 (0.28 per cent)
The Dow Jones closed down 34.65 (0.20 per cent)
Oil is trending lower (Brent $48.56, WTI $47.46 at 4.25pm)
Gold is trending higher (1296.60 at 4.25pm)
The loonie is valued at U$0.7745
Manufacturing sales up 1 per cent
Canada’s manufacturing sector proved stronger-than-expected Wednesday as Statistics Canada released its latest sales data.
After two months of decline, there was a turnaround in April with sales up 1 per cent to $50.4 billion, driven by the petroleum and coal product, transportation equipment, and primary metal industries.
Prices for the sector were 0.5 per cent lower but in constant dollar terms, manufacturing sales were up 1.4 per cent.
Alberta, Quebec and Ontario posted the strongest gains in sales.
42 per cent of Canadian jobs at risk says study
The rise of robots – or at least artificial intelligence – could put as many as 42 per cent of Canadian jobs at risk according to a new study.
The Brookfield Institute for Innovation + Entrepreneurship at Ryerson University says that computers will become smarter and be able to take on roles that currently they cannot.
Retail, admin and other support roles are most at risk, the study says, while those that require greater creativity will be relatively safe.
Local news boosted on TV
A new fund will be available to help smaller local TV stations comply with new CRTC requirements to provide local news.
The fund of around $23 million was announced as part of a commitment to local TV news which will require larger stations to provide 14 hours of local news per week in metropolitan areas and 7 hours per week non-metro markets.