TSX outperforms Wall Street as US jobs report disappoints
Wall Street takes a break for the Labor Day weekend after Thursday’s session but it was a lacklustre end to the short trading week. Greek debt was still a present concern but in focus was jobs data that showed that there were 223,000 non-payroll jobs added in June and unemployment fell to 5.3 per cent; analysts had expected more. Meanwhile the Toronto managed to rebound from the Canada Day interval to close higher. Asian markets closed mostly higher although Shanghai was off by 3.49 per cent as sentiment failed to recover despite new rules allowing the easier borrowing of money for stock purchases. European markets were mostly lower with the exception of London as the Greek debt situation continues to dominate the region.
The S&P/TSX Composite Index closed up 84.66 (0.58 per cent)
The NYSE closed lower
Oil is trending lower (Brent $61.85, WTI $56.58 at 4.30pm)
Gold is trending lower
The loonie is valued at U$0.7969 (at 4.30pm)
Canada already in recession says Bank of America
The Bank of America’s Emanuella Enenajor says that Canada’s economy declined by 0.6 per cent in the second quarter of 2015; the same as in the first three months. It’s the first bank to call for a recession, defined by two consecutive quarters of negative growth. Analysts are now talking of an interest rate cut by the Bank of Canada this year with some even suggesting it will happen on July 15.
Canada’s manufacturing sector turns positive
Following five months of decline the manufacturing sector has rebounded with growth in June according to the RBC Purchasing Managers Index. A figure above 50 shows growth and June’s figure hit 51.3 following 49.8 in May and sub-50 readings since the start of 2015. Stronger demand from the US and the weaker Canadian dollar helped push the sector higher. The new export orders and overall export orders sub-indexes also gained.
Another new CEO for Sears Canada
It was less than a year that Ronald Boire was appointed chief executive at Sears Canada; now he is leaving to join US book retailer Barnes & Noble as president and CEO. Last week Sears Canada was said to have a “slim chance of survival” by Keith Howlett of Desjardins. The unfortunate tradition of an annual CEO exit began in 2013 by Calvin MacDonald and continued in 2014 with Douglas Campbell. The chairman Brandon Stranzl will take a leadership role immediately.
Alberta securities regulator agrees automatic ‘rubber stamp’
The Alberta Securities Commission said Thursday that most decisions made by other province’s securities regulators would now automatically apply in Alberta. It ends the requirement for any violations and bans from elsewhere in Canada to be considered by Alberta before taking effect. The simpler procedure will only apply to Canadian regulators’ decisions.