TSX lower despite strong gains for oil, gold
A rebound in sentiment ahead of this week’s OPEC meeting failed to boost the main TSX index Monday. The energy sector was the largest drag on the index despite a 2 per cent rise for oil prices.
Of the other sectors, materials gained 2 per cent as gold prices gave producers a boost while financials and utilities were the other sectors to close higher.
Wall Street also closed lower as the Trump rally lost steam while financials were down 1.4 per cent.
Europe’s indexes closed lower with Italy’s banks continued to concern investors; Asian markets were mixed earlier in the day.
The S&P/TSX Composite Index closed down 60.08 (0.40 per cent)
The Dow Jones closed down 54.24 (0.28 percent)
Oil is trending higher (Brent $48.01, WTI $46.89 at 4.25pm)
Gold is trending lower (1194.40 at 4.25pm)
The loonie is valued at U$0.7450
Banks warned over mortgage complacency
The banking regulator had a clear message for mortgage lenders Monday – keep your underwriting practices tight.
OFSI said that with uncertain economic conditions, ensuring that lending is done responsibly is essential to maintain the stability of the financial system. The regulator warned of complacency from the extended period of low interest rates and rising home prices.
With the potential for a house price correction if conditions worsen, OFSI said that lenders could face significant losses but tight lending conditions would lessen the blow.
Saskatchewan will keep coal beyond Ottawa’s 2030 target
The federal government wants coal-generated electricity to be phased-out by 2030, but that won’t be happening in Saskatchewan.
The province has agreed a deal with Ottawa which will allow the use of coal power stations beyond the target if the overall system meets the emissions targets.
That could include fitting carbon capture and storage technology on more of the province’s power stations; only one does so far. Saskatchewan will generate at least 50 per cent of its electricity from renewable sources by 2030.