Daily Wrap-up: TSX outperforms Wall Street on Fed concern

Daily Wrap-up: TSX outperforms Wall Street on Fed concern

Daily Wrap-up: TSX outperforms Wall Street on Fed concern TSX outperforms Wall Street on Fed concern
The main index of the Toronto Stock Exchange ended the session higher Wednesday as oil prices gained to settle above $32. In fact the TSX outperformed Wall Street’s three main indexes as the Fed announced that it was holding interest rates steady amid concern over the global economy.

Asian markets had closed mostly higher earlier in the day with Shanghai the notable exception.

European markets closed higher; buoyed by the rebound in oil prices and in reaction to the Fed’s interest rate decision.
 
The S&P/TSX Composite Index closed up 46.45 (0.38 per cent)
The Dow Jones closed down 222.8 (1.38 per cent)
Oil is trending higher (Brent $32.87, WTI $32.04 at 4.45pm)
Gold is trending higher (1124.80 at 4.45pm)
The loonie is valued at U$0.7096
 
Housing market slowing says CMHC
The CMHC said Wednesday that there are signs of overbuilding in a number of Canadian cities, a sign that the markets are slowing down. The agency warned that Calgary, Saskatoon, Regina and Ottawa have increased vacancy rates and unsold units. As well as supply outpacing demand in some areas, there is also evidence of price acceleration and over-pricing in cities such as Toronto, Calgary, Regina and Saskatoon. Inventory management is “becoming more important” the report noted.
 
Auto sector not expected to grow this decade
The Canadian auto industry is not expected to grow for the next five years according to the Conference Board of Canada. Although there was an increase in sales in the past year manufacturing was down 5.5 per cent with 2.3 million light trucks and cars built. Experts are forecasting more investment in auto manufacture to go to Mexico and the US, although in the short-term the lower Canadian dollar is expected to help.
 
Bombardier shares hit 25-year low
Shares in Bombardier hit $1, their lowest value for 25 years. The stock suffered a 2 per cent drop Wednesday as the C-series continues to be an issue for the firm and debt levels are at U$9 billion. If the shares fail to recover it could see Bombardier losing its listing on the S&P/TSX Composite Index.