TSX outperforms after US jobs data
The main index of the Toronto Stock Exchange closed higher Friday as Wall Street and much of Europe declined following US jobs data. The lower-than-expected labour figures were good news for gold prices though as investors bet on the Fed delaying a rise in interest rates.
Materials and commodities gained on the TSX too and the main index overall entered a bull market, having gained more than 20 per cent from its previous low.
Wall Street closed lower following the jobs data. Most European indexes also closed with losses while Asian markets had closed higher before the US data.
The S&P/TSX Composite Index closed up 89.79 (0.64 per cent)
The Dow Jones closed down 31.50 (0.18 per cent)
Oil is trending lower (Brent $49.80, WTI $48.84 at 4.40pm)
Gold is trending higher (1245.80 at 4.40pm)
The loonie is valued at U$0.7725
Canada’s trade deficit narrows
Canada’s trade deficit with the rest of the world narrowed to $2.9 billion in April according to new data from Statistics Canada. In March it was $3.2 billion.
Exports increased by 1.5 per cent to $41.8 billion with prices up 1.1 per cent and volumes up 0.5 per cent. Imports increased 0.9 per cent to $44.7 billion, with volumes up 0.8 per cent and prices up 0.1 per cent.
Exports of energy products saw a 7.6 per cent gain to $5 billion while industrial machinery, equipment and parts saw the largest rise (10.5 per cent) to $2.8 billion.
Pension plans show strength
Canada’s pension plans are looking stronger in recent months. A report from Aon Hewitt shows that the median solvency ratio among the 449 plans it surveyed was up to 87.1 per cent at the start of June; a month earlier it was 86.1 and in April it was 83.1. Pension plans decreased in 2015 and the start of 2016 due to lower interest rates and falling equities.
Valeant defaults again
Valeant has been hit with another debt default notice following its failure to file its quarterly report on time. The pharma firm said that it will file the first-quarter data on or before June 10. Bondholders issued the second default notice and remain cautious ahead of the report.