TSX tracks highs, lows of oil prices
There was disparity between US and Brent oil prices at the close of the markets Wednesday. Volatile prices continue to dominate headlines and markets and in the last few days they have been hit by demand worries and then boosted by hopes of production cuts. OPEC released its forecast Wednesday and said that some of its members have increased output again; dashing hopes that the cartel could decide to reduce levels. Some analysts are calling for a sub-$20 barrel.
With oil’s highs and lows hitting energy stocks and mining also weak, financials helped curb losses as the Fed’s chair dampened expectation of zero or negative interest rates which would have hit bank profits.
Asian markets had closed their session lower with Tokyo and Sydney among the largest losers although some markets are still closed for holidays. In Europe markets managed to remain in positive territory despite banks and commodities falling.
Wall Street slipped towards the end of the session with the Dow closing lower, the S&P flat and the Nasdaq slightly higher.
The S&P/TSX Composite Index closed down 96.93 (0.79 per cent)
The Dow Jones closed down 99.64 (0.62 per cent)
Oil is trending mixed (Brent up at $30.88, WTI down at $27.31 at 4.30pm)
Gold is trending lower (1197.80 at 4.30pm)
The loonie is valued at U$0.7187
CI Investments to pay $156 million to investors
The Ontario Securities Commission has agreed a settlement deal which will see CI Investments pay $156 million in compensation to investors who bought funds with inaccurate valuations. The mutual fund will also pay more than $8 million to the OSC.
National Bank warns of housing correction
National Bank Financial has warned that the flow of foreign money into Canada’s real estate markets could begin to ease as governments such as China’s take action, increasing the threat of a correction in the hottest cities. Foreign investment in housing in Toronto and Vancouver is frequently flagged as a risk but with limited data on how large the slice of foreign ownership is; it is hard to make an accurate estimate of the potential correction. National Bank believes that the market could be overvalued by between 10 and 30 per cent.