TSX higher boosted by Valeant, oil
Following Monday’s low there was better news for Canadian stocks Tuesday as oil prices increased ahead of the expected interest rate increase by the Fed in the next session. Valeant Pharmaceuticals also gained when the firm announced a discount sale of its beauty products in US Walgreens stores.
Wall Street also gained ahead of the Fed with the three main indexes closing around 1 per cent higher.
Asian markets, which closed while oil was still waning, closed lower. European indexes were sharply higher with gains of around 3 per cent.
The S&P/TSX Composite Index closed up 224.1 (1.77 per cent)
The Dow Jones closed up 156.5 (0.90 per cent)
Oil is trending higher (Brent $38.22, WTI $37.11 at 4.05pm)
Gold is trending lower (1060.00 at 4.05pm)
The loonie is valued at U$0.7275
BoC concerned about house prices, rising debt
The governor of the Bank of Canada spoke Tuesday to give an update on the financial system. Stephen Poloz highlighted concerns about rising household debt and vulnerabilities in the housing market from high prices and imbalances. Despite the concerns, which are higher in the housing market than they were in the last review, the bank says that financial institutions are resilient and that the housing imbalances should stabilize along with economic growth.
Manufacturing sales edged lower in October
Statistics Canada’s data on manufacturing sales in October show that there was a decline of 1.1 per cent to $50.4 billion. It was the third consecutive decrease. Declines in the petroleum and coal product, aerospace product and parts, and machinery industries were responsible for the overall drop. In constant dollar terms, sales were down 1.0 per cent, indicating that lower volumes of manufactured goods were sold.
Low oil prices not transferring to the gas pumps
Gasoline prices should be lower than they are according to a new BMO report. Gasoline was around 80 cents a litre in 2008, the last time that Brent crude was at the current level. Instead it’s around a dollar.