TSX closes higher as energy gains offset gold losses
Oil prices gained Friday while gold and other metals declined on the stronger US dollar and expectation of a Fed rate rise next month.
The main TSX index closed higher, led by energy and utilities stocks while consumer staples and materials dragged.
Wall Street had been trending towards a higher end to the session but closed with losses for the day but up over the week. European and most Asian indexes also closed lower.
The S&P/TSX Composite Index closed up 37.94 (0.26 per cent)
The Dow Jones closed down 35.89 (0.19 per cent)
Oil is trending higher (WTI $45.58 at 6.10pm)
Gold is trending lower (1207.30 at 6.10pm)
The loonie is valued at U$0.7406
Inflation up 1.5 per cent in October
Canada’s Consumer Price Index was published Friday showing a rise of 1.5 per cent in the year to October, increasing the pace of inflation from the 1.3 per cent in September.
The cost of living was up despite lower food costs for the first time in 16 years which were down 0.7 per cent overall; and down 2.1 per cent for food purchased from stores, the largest decline for that sector since 1992.
The cost of transportation led the gains for the CPI with a 3 per cent rise, largely due to gasoline (up 2.5 per cent) while shelter costs were up 1.9 per cent.
Further home downpayment increases required says CMHC boss
The chief executive of the CMHC has told an audience in London that the federal government’s regulation change which requires larger downpayments for government-backed mortgages was an “initial step”.
Evan Siddall said that there may be a case for further increases to downpayment requirements or other policy changes to curb rising home prices.
“Politicians are tempted to help first-time home buyers enter the market, but low down payments may be part of the problem adding to affordability pressures and macroeconomic vulnerabilities,” Mr Siddall said.