Daily Wrap-up: TSX down 1 per cent as BoC downgrades outlook

Daily Wrap-up: TSX down 1 per cent as BoC downgrades outlook

Daily Wrap-up: TSX down 1 per cent as BoC downgrades outlook TSX down 1 per cent as BoC downgrades outlook
The main index of the Toronto Stock Exchange slipped 1 per cent Wednesday as the Bank of Canada sounded caution for the economy and held interest rates at 0.5 per cent.

The BoC outlook was downgraded to 2.0 per cent for 2016 (from 2.3 per cent in its previous outlook) and 2.5 per cent in 2017 (from 2.6 per cent). It also pointed to potential headwinds from outside Canada but was confident that household debt, while still rising, is manageable.

BoC governor Stephen Poloz said the bank will analyze any changes to federal fiscal policy as and when they are announced.

Global markets were mixed with Asia weighing weaker-than-expected Japanese export data and China’s economy. Europe closed mixed ahead of the ECB’s policy meeting Thursday.

Wall Street digested a mixed raft of corporate earnings and the three main indexes closed with losses.
The S&P/TSX Composite Index closed down 137.7 (1.0 per cent)
The Dow Jones closed down 48.30 (0.28 per cent)
Oil is trending lower (Brent $47.89, WTI $45.20 at 4.20pm)
Gold is trending lower (1166.80 at 4.20pm)
The loonie is valued at U$0.7614
Valeant shares plunge on Enron comparison
One of Canada’s biggest firms saw its shares plunge up to 40 per cent Wednesday as Citron Research called its integrity into question in a report titled “Valeant: Could This Be the Pharmaceutical Enron?” suggesting that the drugs firm has been inflating its worth through fake invoices. The allegations have not been proven and Valeant says that the claims are “erroneous”.
Canada to benefit from global warming claims report
Global warming is one of the most pressing and important issues facing the world; scientists, economists and world leaders say so; but Canada could actually benefit says a new report. In economic terms most economies will suffer and the gap between rich and poor nations will widen according to a study by the University of California Berkeley’s Professor Solomon Hsiang and Marshall Burke of Stanford and Hsiang and published in Nature. The issue is productivity with warmer countries suffering as workers become less productive in higher temperatures. Colder climates such as Canada, Russia and Europe will benefit as temperatures rise to those that prompt more productivity.  

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