North American markets steady with TSX on 3rd day of gains

TORONTO -- The Toronto stock market advanced for a third consecutive session Thursday amid higher oil prices, while in New York indexes staged a partial recovery from big losses the previous session.

See Full Article

"It's good to see the markets are a little bit more stable ... in the last few days," said Sadiq Adatia, chief investment officer at Sun Life Global Investments.

"(But) even though the volatility may have slowed down in the last couple days, it's probably not going away and probably going to remain there for most of the year," Adatia added.

In Toronto, the S&P/TSX composite index soared 214.16 points to 12,591.93 for a cumulative gain of almost 450 points since a 246-point decline Monday.

In New York, the Dow Jones industrial average rose 125.18 points to 16,069.64 after having shed more than 200 points on Wednesday, while the S&P 500 index advanced 10.41 points to 1,893.36 and the Nasdaq 100 added 38.51 points to 4,506.68.

"The sentiment is a little bit better than what we saw earlier in the year," he said, noting that the U.S. Federal Reserve's decision to leave its policy rate unchanged has signalled markets that the U.S. central bank may not move as fast on raising rates as previously anticipated.

U.S. indexes should continue to move in a positive direction, Adatia said, so long as upcoming economic data reports continue to be decent.

The Fed's decision, as well as the Bank of Canada's decision to stand pat at least until the federal government releases its budget, has contributed to the Canadian dollar's recent rise, Adatia said.

On Thursday, the loonie advanced 0.27 of a U.S. cent to 71.18 cents US.

"For the Canadian dollar to drop and stay significantly lower than 70 cents, oil has to be in the 20s," said Adatia, who projects the loonie will hover between 70 and 75 cents for most of this year.

For the loonie to rise above that threshold, oil prices would have to move past $40 for the majority of the year, according to Adatia, who believes oil prices will pass that mark later in the year.

Like the TSX, the Canadian dollar has been riding a wave of rising oil prices, which have increased over the last three days amid ongoing talks between Russia and Saudi Arabia aimed at curbing production.

On Thursday, the March contract for benchmark North American crude rose 92 cents or 2.8 per cent to US$33.22 a barrel. That was on top of a 6.5 per cent climb over the previous two days.

In other commodities, the March natural gas contract was up 2.5 cents at US$2.182 per mmBtu, while April gold gave back 20 cents to US$1,116.10 an ounce and March copper lost a penny to US$2.05 a pound.



Advertisements

Latest Economic News

  • Asian shares stumble as European Central Bank rally fades

    Economic CTV News
    KUALA LUMPUR, Malaysia - Asian shares meandered Friday as an overnight rally in U.S. markets helped by the European Central Bank's decision to extend its bond-buying economic stimulus program faded. South Korea's benchmark slipped as lawmakers prepared to vote on whether or not to impeach President Park Geun-hye. Source
  • Sales, profit at Sears in U.S. continue to decline

    Economic CTV News
    HOFFMAN ESTATES, Ill. -- Sears, the one-time standard bearer for U.S. retail, has posted quarterly losses for more than a year now, and sales continue to slide as the company shutters poorly performing stores. The company's cash situation, which has led in the past to clashes with suppliers, is an ongoing concern. Source
  • Stock markets in New York hit new record highs

    Economic CBC News
    Major stock markets in New York closed at record highs Thursday amid a broad rally from banks, materials and technology companies. The Dow Jones industrial average advanced 65.19 points at 19,614.81, while the S&P 500 added 4.84 points at 2,246.19, both hitting all-time highs for a second day in a row. Source
  • BlackBerry launches new security platform to help companies manage connectivity

    Economic CTV News
    WATERLOO, Ont. - BlackBerry revealed its latest security offering on Thursday intended to help companies reliably manage their current and future connectivity needs. The company's new platform, BlackBerry Secure, is designed to help businesses keep tabs on all their devices to transmit sensitive data to keep people, information and goods safe. Source
  • NHL won't change name of Vegas Golden Knights despite trademark denial

    Economic CBC News
    The National Hockey League says it won't change the name or logo of its newest club, despite being denied a trademark by U.S. authorities. Just a couple of weeks after the Vegas Golden Knights revealed their name, logo and team colours, the U.S. Source
  • Coke sets sights on new demographic: foodies

    Economic CTV News
    NEW YORK -- What beverage goes best with lobster rolls, a bagel sandwich stuffed with whitefish, or a bowl of ramen? Coke wants you to think of soda. Coca-Cola is trying to sell more of its flagship beverage by suggesting the cola can accompany a wide range of meals, rather than just the fast food and pizza with which it's a mainstay. Source
  • Overhead bin fees? Yes, with United's new 'basic' fare

    Economic CTV News
    United Airlines is creating some turbulence in the airline industry with changes to its fare structure, including a new “basic economy” fare. The cheap ticket comes with a catch, however: If you want to use the overhead bin, you must pay an extra charge. Source
  • SNC-Lavalin cutting 405 jobs in Canada mainly due to mining weakness

    Economic CBC News
    Engineering giant SNC-Lavalin is cutting another 405 jobs in Canada due to the weakness in the mining sector and ongoing efforts to boost its profit margin. Spokesman Louis-Antoine Paquin says the company will eliminate 186 positions in Montreal, 195 in Ontario and 24 in Saskatoon, says spokesman Louis-Antoine Paquin. Source
  • Public sector workers paid 10.6% more than private sector average: Fraser Institute

    Economic CBC News
    Almost 90 per cent of public sector workers have some sort of pension plan. By constrast, less than a quarter of private sector workers do. (Chris Wattie/Reuters) People who work in the public sector make almost 11 per cent more than their counterparts in the private sector, a new analysis of Statistics Canada data by the Fraser Institute think tank has found. Source
  • Toronto, Hamilton, K-W expected to lead country in 2017 house price gains: Re/Max

    Economic CBC News
    Re/Max sees the average national house price rising by two per cent in 2017, led by big projected gains in real estate prices in the Hamilton, the Greater Toronto Area and Kitchener-Waterloo. In its 2017 housing market outlook, which was released Thursday, Re/Max said it sees house price appreciation in Hamilton leading the country with an 11 per cent gain in average residential home sale prices, followed by eight per cent gains expected for both the GTA and K-W. Source