TSX one of best performers as global sentiment wavers
Manufacturing PMI data and other economic indicators dampened global sentiment Monday, especially in Europe and North America.
Despite concerns, Canada’s main stock index closed higher as metals producers including Teck and Barrick gained. Gold prices saw modest gains. Telecoms was the only other sector group of the TSX to remain positive while healthcare and consumer staples were the weakest sectors.
Wall Street closed lower on manufacturing and auto sales data; and European indexes closed lower following a bomb blast on the Russian metro which killed 11 people. Asian markets had closed mostly higher earlier in the day.
The S&P/TSX Composite Index closed up 36.65 (0.24 per cent)
The Dow Jones closed down 13.01 (0.06 per cent)
Oil is trending lower (Brent $53.12, WTI $50.27 at 4.50pm)
Gold is trending higher (1254.80 at 4.50pm)
The loonie is valued at U$0.7470
Border tax will hit Canada but US could suffer more says Morneau
If Donald Trump imposes a border tax on Canada, the US economy may suffer more than Canada.
That was the warning federal finance minister Bill Morneau gave at an event in New York in which he said that both countries would see an initial negative effect from a border tax but “the negative may be worse for the United States economy.”
Morneau recognized the mutually beneficial trading relationship between Canada and the US and said that his comments were based on preliminary assessments of a potential tax.
Canadian auto sector gains
There were Canadian sales gains for GM, Fiat Chrysler and Ford in March while US sales failed to meet expectations.
General Motors was the best performer in Canada with an annual gain of 22.9 per cent while the other two major names saw only slight gains. GM’s truck sales were the driver of the sales gain.
Business sentiment is up
More than half of Canadian businesses surveyed by the BoC expect to see stronger sales in the next year while less than a third believe sales will slow.
The central bank’s quarterly survey also revealed greater intentions for investment in machinery and equipment with these intentions becoming more widespread.
Among the concerns of businesses are the protectionist ideals of Donald Trump.