TSX rises as oil prices improve
Oil prices surged by more than 3.5 per cent Tuesday as supplies were restricted by a strike in Brazil and armed militia closed a major oil export terminal.
The main index of the Toronto Stock Exchange and the three main New York indexes all closed higher.
Elsewhere Asian markets closed mixed with Shanghai and Tokyo performing poorly compared to their peers; Sydney gained as Australia’s central bank held interest rates.
European stocks were flat or slightly higher on the oil prices but earnings subdued the gains.
The S&P/TSX Composite Index closed up 87.30 (0.64 per cent)
The Dow Jones closed up 89.39 (0.50 per cent)
Oil is trending higher (Brent $50.47, WTI $47.88 at 4.10pm)
Gold is trending lower (1117.10 at 4.10pm)
The loonie is valued at U$0.7662
RBC is not too big to fail
The Royal Bank of Canada has not been included on a global list of financial institutions considered “too big to fail”. The bank was expected to be included on the Financial Stability Board’s updated list, which would have meant the bank holding an extra 1 per cent of capital reserves. Having just spent $5 billion (albeit mainly in shares) on the acquisition of City National Corp. capital reserves are depleted.
Bombardier has positive outlook for business jet
Bombardier’s business aircraft division president said Tuesday that he was confident that its Global 7000 aircraft would be ready to go into service in the second half of 2018. Reuters reports that the jet’s testing is going well and the flight validation phase is about to start. The firm has 10 engines already completed.
The cost of an aging population
Canadian provinces have been warned to prepare for the additional costs of the aging population. A report from the Conference Board calculates that there will be a 71 per cent increase in the number of Canadian seniors requiring continuing care by 2026 with costs rising to $62.3 billion from current levels of $28.3 billion, assuming costs stay the same. With provinces funding 66 per cent of the care it will put a strain on provincial budgets.
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