Daily Wrap-up: Financials drag TSX despite profits

Daily Wrap-up: Financials drag TSX despite profits

Daily Wrap-up: Financials drag TSX despite profits Financials drag TSX despite profits
Canada’s banks have been reporting increased profits but it was the financial sector of the TSX’s main index which dragged it lower Thursday.

Oil prices gained almost 3 per cent while gold prices were boosted following an announcement of additional ECB stimulus.

Asian markets closed mixed earlier in the day, while European indexes closed lower as the ECB announcement of extended asset-buying and a cut in interest rates disappointed investors.

Wall Street also closed lower with the Fed’s interest rate prospects adding to the poor reaction to the ECB.
The S&P/TSX Composite Index closed down 139.2 (1.02 per cent)
The Dow Jones closed down 250.7 (1.41 per cent)
Oil is trending higher (Brent $43.91, WTI $41.17 at 4.10pm)
Gold is trending higher (1062.10 at 4.10pm)
The loonie is valued at U$0.7496
CMHC says foreign ownership of condos is growing
Foreign ownership of condos is at a low level but growing according to data from the Canada Mortgage and Housing Corporation. The agency’s report shows that 3.5 per cent of Vancouver condos were bought by foreign buyers in 2015, up from 2.3 per cent in 2014; in central Toronto the figure was 5.8 per cent, up from 4.3 per cent in 2014. CMHC president Evan Siddall said that it showed a significant increase and that it could present a risk to the housing market. However he said that more data was required to provide a fuller picture.
Nuclear reactors in line for $13 billion upgrade
Bruce Power is to invest $13 billion to upgrade nuclear reactors in Ontario. However it will not start in 2016 as previously planned but in 2020 the Liberal government announced Thursday. Bruce will assume all risks for the cost of any overruns at the Kincardine station. The new timescale will save taxpayers $1.7 billion.
Sears Canada sales increase, losses ease
Sears Canada has seen same-store sales increase in its latest quarter. Although overall sales were down 5 per cent as some stores closed, those that continued trading saw a 0.4 per cent boost with ‘core’ locations gaining by 2.7 per cent. Profits are some way off though; the retailer lost $53.2 million in the third quarter, better though than the $118.7 million it lost in the same period of 2014.

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