TSX rebounds almost 1 per cent
The main index of the Toronto Stock Exchange gained around 1 per cent Monday as most of its sectors gained, led by financials and energy stocks which rebounded with oil prices.
The gains here and on Wall Street really only corrected losses from the previous session and analysts predict that world markets will remain volatile for another month.
Asian markets were broadly lower with only China managing gains. Tokyo was closed for a public holiday.
European equities closed higher despite losses for VW which faces fresh probes over its emissions data and has so far lost a quarter of its market value over the scandal; and insurer RSA which is no longer a takeover target for Zurich.
The S&P/TSX Composite Index closed up 132.5 (0.97 per cent)
The Dow Jones closed up 125.6 (0.77 per cent)
Oil is trending higher (Brent $48.67, WTI $46.30 at 4.20pm)
Gold is trending lower (1132.70 at 4.20pm)
The loonie is valued at U$0.7550
Positive talk for Canadian oil sector
Monday brought some encouragement for the oil sector as Bank of Canada Governor Stephen Poloz told a business meeting in Calgary that we’ve been here before and got through it. He said the industry will adapt to the low prices. There was more positive talk from the chief economist at ATB Financial who says Alberta, and the energy industry, appears to be past the worst of the downturn. Todd Hirsch expects growth by the second half of 2016; some months away but at least it appears to be on the way.
Nature delivered some bad news for the sector though as a study shows that the oilsands of Alberta may face severe water shortages which will disrupt oil production. The Athabasca River study shows that the estimated 72 per cent usage of the river’s water by the oilsands is unsustainable.
Wholesale trade unchanged in July
Data from Statistics Canada released Monday reveals that wholesale sales were unchanged at $55.4 billion in July. Higher sales in three subsectors, representing 52 per cent of wholesale sales, were offset by lower sales in other subsectors. Those gaining were machinery, equipment and supplies; motor vehicles and parts; and miscellaneous. In volume terms, wholesale sales decreased 0.4 per cent in July.