Stocks tumble on oil prices, Fed
The week started with a negative tone as equities, oil, gold, the loonie and sentiment all took a tumble.
Oil prices declined to their lowest since April as concern over the global supply glut increased. Meanwhile, caution ahead of the Fed’s July meeting subdued the markets further.
Toronto’s main stock index was down triple digits as energy, financials and miners were all lower. Friday had seen the year’s highest close so far.
Asian and European markets closed mixed as global pressures were eased by regional earnings. Wall Street closed lower though.
The S&P/TSX Composite Index closed down 102.6 (0.70 per cent)
The Dow Jones closed down 77.79 (0.42 per cent)
Oil is trending lower (Brent $44.74, WTI $43.09 at 4.55pm)
Gold is trending lower (1315.80 at 4.55pm)
The loonie is valued at U$0.7564
Ontario debt reaches $300 billion?
Provincial net debt in Ontario has reached $300 billion according to the Canadian Taxpayers’ Federation. The group said Monday that the figure would be reached by midday Monday and equates to $21,600 for every one of the province’s residents. The Financial Accountability Office has predicted debt of $350 billion within 4 years.
BC takes aim at foreign home investors
Foreign investors who buy homes in British Columbia will be hit with a new 15 per cent tax. The provincial government announced the move Monday and said that the new tax would be introduced on August 2, 2016.
There are also new rules which aim to identify those who may try to avoid paying the additional tax on real estate transactions. The City of Vancouver will also be allowed to introduce a tax on vacant homes.
CN profits down 3 per cent
Quarterly profits in Canadian National Railway Co. were down 3 per cent to $858 million for the 3 months to the end of June. Revenue was down 9 per cent from a year earlier to $2.8 billion.
CN’s income was hit by the a downturn in freight volume across the industry, however the earnings of an adjusted $1.11 per diluted share was above analysts’ expectations of $1.06.