Markets, loonie up as oil continues to rise

TORONTO -- The Toronto stock market was set to cap its second strong weekly advance in a row after a dismal start to the year as oil prices continued to improve.

See Full Article

At mid-afternoon Friday, the S&P/TSX composite index was 131.10 points higher at 12,723.03 and up a net 330 points for the week after shedding more than 246 points on Monday.

This week's gains followed a 316-point advance last week after a three-week string of losses that saw the TSX drop more than 1,200 points in the three weeks that followed the Christmas break.

The commodity-sensitive Canadian dollar also continued to trend higher on the strength in oil, up 0.29 of a U.S. cent at 71.38 cents US after having rebounded from below 69 cents US early last week.

In New York, markets were sharply higher, helped by a big gain in technology companies after Microsoft posted a strong fourth quarter, as well as strong results from both Visa and MasterCard.

The Dow Jones industrial average soared 318.11 points to 16,387.75 on the heels of a 125-point advance Thursday. The S&P 500 rose 37.00 points to 1,930.36 and the Nasdaq added 80.27 points to 4,586.94.

In commodities, the March contract for North American benchmark crude oil closed up 40 cents at US$33.62 a barrel. It has now risen 18.5 per cent since finishing as low at US$28.36 last week.

Elsewhere in commodities, March natural gas shot up 11.6 cents to US$2.298 per mmBtu, while April gold added 30 cents to US$1,116.40 an ounce and March copper rose 1.55 cents to US$2.067 a pound.

Overseas, Asian markets began the day with a big rally after the Bank of Japan announced a surprise stimulus measure by cutting its key overnight interest rate to a negative 0.1 per cent. Effectively, the move means that commercial banks will be charged for leaving large amounts of cash parked at the central bank.

The policy is intended to encourage banks to lend more money in order to stimulate investment and growth in Japan's struggling economy.

Japan's Nikkei 225 jumped 2.8 per cent on the news, while Hong Kong's Hang Seng gained 2.5 per cent and the Shanghai composite rose 3.1 per cent.

European indexes also rose, with Germany's DAX up 1.6 per cent, France's CAC 40 up 2.2 per cent at Britain's FTSE 100 closing 2.6 per cent higher.



Advertisements

Latest Economic News

  • Ontario promises housing affordability measures in the spring budget

    Economic CTV News
    TORONTO -- Ontario Finance Minister Charles Sousa confirmed Monday he plans to include housing affordability measures in his upcoming budget. Premier Kathleen Wynne has said her government is working on a "comprehensive set of plans," to deal with rising home prices in the Greater Toronto and Hamilton Area (GTHA), as well as rising rental rates. Source
  • Home Capital terminates CEO Martin Reid

    Economic CBC News
    Home Capital Group Inc. has terminated its president and CEO Martin K. Reid, effective immediately. Kevin P.D. Smith, chair of the board of directors, said in a statement Monday that the Toronto-based mortgage lender requires leadership that can bring a renewed operational discipline, emphasis on risk management and controls, and focus on improving performance. Source
  • B.C. First Nation gives nod to proposed LNG export facility

    Economic CTV News
    VANCOUVER -- A First Nation on Vancouver Island has approved a proposed liquefied natural gas export facility on its traditional territories. Leaders of the Huu-ay-aht First Nation and the CEO of Vancouver-based Steelhead LNG held a joint news conference in Vancouver on Monday to announce what Chief Robert Dennis said was the First Nation's "official entry into the international business world. Source
  • Officials gear up to assign infrastructure cash or lose control over its spending

    Economic CTV News
    OTTAWA - Provincial governments have been warned that they have until this time next year to start assigning billions in infrastructure cash to eligible projects, or else they could lose control over how it can be spent. Source
  • B.C. appeal court rules against Burnaby in bylaw battle with Trans Mountain

    Economic CTV News
    VANCOUVER -- A legal battle between the City of Burnaby and the Trans Mountain pipeline expansion has ended with the British Columbia Court of Appeal ruling the National Energy Board can override municipal bylaws. The fight began in 2014 when Trans Mountain was set to begin field studies on Burnaby Mountain, which required it to cut down trees, drill boreholes and operate heavy machinery -- activities that violate the city's bylaws. Source
  • Finance minister to tout Canada-U.S. trade to U.S. governors and mayors

    Economic CTV News
    CALGARY -- Canada's finance minister says he intends to head south of the border next week to reinforce the importance of Canada-U.S. trade. "Our approach was to be deeply engaged with the new administration from Day 1 . Source
  • Heroux-Devtek stocks drop after USAF rejects bid for new contract

    Economic CTV News
    LONGUEUIL, Que. - Heroux-Devtek Inc. shares hit a 52-week low Monday after the landing gear maker said its bid for a new contract with the U.S. military was rejected and work under an existing contract will be phased out within two years. Source
  • Saudis cut tax rate for Aramco ahead of IPO

    Economic CTV News
    RIYADH, Saudi Arabia -- Saudi Arabia on Monday reduced the tax rate for Saudi Aramco as plans move forward to publicly list shares of the state-owned oil giant. The new code, rolled out by royal decree from King Salman, taxes Aramco at 50 per cent on income retroactively starting Jan. Source
  • Justices refuse to hear appeal in music copyright dispute

    Economic CTV News
    WASHINGTON -- The U.S. Supreme Court won't hear an appeal from record companies that want to pursue copyright infringement claims against music site Vimeo for hosting unauthorized recordings from the Beatles, Elvis Presley and other classic artists. Source
  • Canadian marijuana stocks ride high off legalization reports

    Economic CTV News
    TORONTO - Canadian marijuana stocks got a boost Monday following reports that the federal government will introduce a bill next month that aims to legalize pot by July 1, 2018. Shares of Canopy Growth Corp. Source