Investors take profits, resources stocks lower
Investors chose to take profits Friday and together with a weaker day for the resources sector it led to the main TSX index closing with losses. The week has been a more optimistic one for the markets as the Greek deal stabilized Europe, China’s market was less volatile towards the end of the week and Canada’s banks were boosted by the interest rate cut. Wall Street saw mixed fortunes with the Nasdaq outperforming the Dow once more. Asian markets ended their trading week mostly higher; Shanghai was up 3.5 per cent. European indexes closed flat.
The S&P/TSX Composite Index closed down 88.24 (0.60 per cent)
The NYSE closed mixed (Dow down 33.80 / 0.19 per cent)
Oil is trending mixed (Brent up at $57.09, WTI down at $50.80 at 4.40pm)
Gold is trending lower
The loonie is valued at U$0.7700 (at 4.40pm)
Inflation up 1 per cent
Canada’s inflation grew by an annual rate of 1 per cent in June following a 0.9 per cent increase in May. Statistics Canada released figures Friday which showed higher food prices, especially meat, were the main drivers of the increase. The food sector was up 3.4 per cent year-over-year. Shelter costs rose by a 1 per cent annual rate while insurance for homes and mortgages increased 9.2 per cent. Gasoline prices were down 14.1 per cent over the year but slightly higher than in May.
Fitch takes aim at Canadian housing market again
Credit ratings agency Fitch still believes that Canada’s housing market is overvalued to the tune of 20 per cent but doesn’t think the BoC rate cut will change that. The agency says that there will be a soft landing for the housing market and that with mortgage rates already at a record low there will not be increased borrowing following the rate cut.
Valeant to buy Egyptian firm for $800 million
Quebec-based drug manufacturer Valeant Pharmaceutical said Friday that it will buy Mercury (Cayman) Holdings, the parent company of Egyptian drugs firm Amoun. The $800 million acquisition is key to a plan by Valeant to expand its footprint in the Middle East and North Africa.
More market talk: