Daily Wrap-up: TSX slumps almost 1 per cent as energy stocks decline

Daily Wrap-up: TSX slumps almost 1 per cent as energy stocks decline

Daily Wrap-up: TSX slumps almost 1 per cent as energy stocks decline TSX slumps almost 1 per cent as energy stocks decline
The holiday weekend is well and truly over as the Toronto Stock Exchange’s main index took a dive Tuesday.

Energy stocks led the decline as oil prices headed further below the $50 mark after last week’s rally. With expectation of the global supply glut continuing for another year the price of West Texas Intermediate was down 1 per cent. Materials including copper and gold were also lower although gold recovered some lost ground later.

Asian markets closed their day lower as China’s trade deficit grew as exports dipped and imports slumped. Europe also felt the cooler headwinds of autumn as investors digested the Asian data and signs of weakness in its own region.

Wall Street closed lower too but after an early sell-off there was some recovery and the Dow Jones ended with lower losses than the TSX. The Nasdaq however was off by almost 1 per cent.
 
The S&P/TSX Composite Index closed down 119.6 (0.86 per cent)
The Dow Jones closed down 49.97 (0.29 per cent)
Oil is trending lower (Brent $49.12, WTI $46.66 at 4.10pm)
Gold is trending higher (1167.50 at 4.10pm)
The loonie is valued at U$0.7681
 
Bad choices on debt – not my problem says Poloz
Bank of Canada governor Stephen Poloz sent a clear message to those who take on debt levels or borrowing options which could put their financial security at risk; it’s your problem. The governor said that he was not surprised that borrowing has increased under the low interest rates of recent years but that the central bank is not to blame for people’s choices. He said that the level of household debt is not setting the bank’s policies and it is for lenders and borrowers to ensure that they are making the right decisions based on their circumstances.
 
Is Lowe’s about to challenge Rona’s home market?
US home renovation retailer Lowe’s could be lining up expansion into Rona’s home province Quebec. The firm is meeting with local suppliers according to a report from Scotiabank. Lowe’s has already announced plans to expand in Canada but outside Quebec, mostly in former Target Canada locations.
 
Self-driving cars to be tested in Ontario
The Ontario government said Tuesday that it will allow testing of self-driving cars on the province’s roads from next year. There will have to be a human on board in case of problems but it should attract manufacturers to the province with the government also weighing longer term environmental benefits from the innovative vehicles.