Daily Wrap-Up: TSX performs better but still in the red

TSX performs better but still in the red... The economy grew at slower pace in April... BoC says business outlook is optimistic...

Daily Wrap-Up: TSX performs better but still in the red
Steve Randall
TSX performs better but still in the red
The main TSX index had a better session Friday than the previous day but gains for 6 sectors were not enough to offset decline for the other 4.

Materials, industrials and energy were among the strongest sectors while financials was among the weaker.

US crude prices gained more than 2.8 per cent despite oversupply but gold eased.

A slower pace of growth shown by GDP data and an increasing prospect of an interest rate rise, possibly next month, were all in focus. So too was the generally weak performance for global equities.

Wall Street was mixed with the Nasdaq still suffering from the fall-out-of-love with tech stocks while the Dow and S&P bounced back into the green.

European and Asian markets closed mostly lower.

The S&P/TSX Composite Index closed down 31.23 (0.21 per cent)
The Dow Jones closed up 62.60 ( 0.29 per cent)
Oil is trending higher (Brent $47.90, WTI $46.24 at 4.40pm)
Gold is trending lower (1241.40 at 4.40pm)
The loonie is valued at U$0.7712

The economy grew at slower pace in April
As expected, the economy grew at a slower pace in April than in the previous month as oil production services tumbled.

Growth of 0.2 per cent was achieved even as oil & gas extraction dropped 0.8 per cent; but the gain was down from 0.5 per cent in March.

Statistics Canada reported Friday that 14 of the 20 sectors grew, mainly service industries which gained 0.3 per cent while goods producers were flat.

BoC says business outlook is optimistic
The latest Business Outlook Survey from the BoC shows increasing optimism with domestic demand set to improve further.

Service industries and better activity in the commodity sector are among the key reasons for the stronger sentiment. The Business Outlook Survey indicator hit its highest level since 2011.

The better outlook adds to the fuel for an earlier interest rate rise.