Daily Wrap-Up: Materials, energy lead gains as oil, gold rise

Daily Wrap-Up: Materials, energy lead gains as oil, gold rise

Daily Wrap-Up: Materials, energy lead gains as oil, gold rise Materials, energy lead gains as oil, gold rise
Oil and gold prices increased Wednesday, pushing the materials and energy sector groups of the main TSX index higher, leading the gains of 4 groups.

But decline for the financials and 5 other sector groups meant a negative end to the session.

Wall Street closed in positive territory following the Fed’s decision to leave interest rates unchanged. European and Asian indexes were also mostly higher, leaving Toronto are one of the world’s weakest indexes of the session.

The S&P/TSX Composite Index closed down 30.98 (0.20%)
The Dow Jones closed up 97.58 (0.45%)
Oil is trending higher (Brent $50.86, WTI $48.65 at 9.10pm)
Gold is trending higher (1260.80 at 4.10pm)
The loonie is valued at U$0.8030

CMHC says housing market is still a concern
The latest assessment of Canada’s housing market maintains the “strong evidence of problematic conditions” view of the Canada Mortgage and Housing Corporation.

The view reflects the agency’s concern about slow growth in the young adult population coupled with a decrease in disposal income and a pickup in home price growth.

The CMHC says evidence of overvaluation at the national level remains moderate while strong evidence is seen in Toronto, Vancouver, Hamilton and Victoria.

Home Capital has repaid its loan but still has problems
Asset sales have enabled Home Capital Group to repay the $2 billion credit facility from Berkshire Hathaway but regulatory issues are now the main concern for investors.

“The full payout of all amounts owing on the Berkshire credit facility is an important next step that highlights the strength of our current liquidity position as we focus on delivering future success,” said Robert Blowes, Interim Chief Financial Officer.

While the lender’s shares rose early in the session on the repayment news, concern about the proposed ban of bundled mortgages by OSFI is seen as a potential barrier for lenders.

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