TSX slips despite rise for oil, gold
Gains for gold and oil prices were not enough to give the main TSX index a positive finish as consumer discretionary and four other sectors declined. Energy led the gains along with utilities and materials.
Brexit plans and Donald Trump remain key focuses for the markets and both played a key role Tuesday with Wall Street declining on potential Trump policies while European indexes slipped following the UK prime minister’s speech.
Asian markets closed lower earlier in the day ahead of the Brexit update in which Theresa May set out the intention for Britain to have a relationship with the EU but not inside the single market or customs union. This is in favour of potential trade deals with non-EU nations, Canada included.
The S&P/TSX Composite Index closed down 37.93 (0.25 per cent)
The Dow Jones closed down 58.96 (0.30 per cent)
Oil is trending higher (Brent $55.46, WTI $52.49 at 4.10pm)
Gold is trending higher (1215.30 at 4.10pm)
The loonie is valued at U$0.7662
Interest rate rise this year says Vanguard
A leading money manager says the Bank of Canada will increase interest rates during 2017, breaking with the consensus for a hold-off until 2018.
Vanguard Group Inc. has made its forecast based on the improving Canadian economy which - despite some issues around rising household debt, hot housing markets and still-low oil prices - is resilient and showing positive signs.
Vanguard’s global chief economist told the Financial Post that moderately higher interest rates were “appropriate” given the data.
Energy sector faces new threat warns CSIS
While Canada’s energy firms begin to feel more confident with more stable prices and action to cut the oil glut, there is a new focus for the sector.
The Canadian Security Intelligence Service warned Tuesday that the energy sector is at risk from cyber attacks and bombs. The warning was revealed in a document obtained by Reuters.
The threat is not necessarily from terrorist groups; the actions of “certain states” are also highlighted.
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