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

  • BlackBerry expecting US$940 million in Qualcomm dispute resolution

    Economic CTV News
    WATERLOO, Ont. -- BlackBerry Ltd. (TSX:BB) says it will receive US$940 million from Qualcomm by May 31 to settle a dispute over royalty payments. An arbitrator sided with BlackBerry in April, and announced an interim award of US$814.9 million plus additional amounts for interest and legal fees. Source
  • World shares weaken ahead of G7 meeting; oil bottoms out

    Economic CTV News
    HONG KONG -- World stock markets weakened Friday as investors awaited the upcoming G-7 summit and oil prices rebounded somewhat as markets shook off initial disappointment over a production cut deal. KEEPING SCORE: European shares opened lower, with France's CAC 40 down 0.8 per cent to 5,297.13 and Germany's DAX lost 0.5 per cent to 12,561.85. Source
  • OPEC decision stabilizes oil prices, but for how long?

    Economic CBC News
    In one of the least surprising OPEC meetings in a while, members of the cartel of oil-exporting countries and their non-member allies agreed to extend oil production cuts on Thursday, which will support the price of oil and should continue to help pave the way for Alberta's economic recovery. Source
  • The case for BlackBerry at $45 US a share

    Economic CBC News
    BlackBerry Ltd. shares have been on a hot streak — rising more than 60 per cent in recent weeks — and one technology analyst thinks some of the company's new products have the potential to help push the stock to $45 US in three years. Source
  • Malicious hackers say they demanded $50,000 ransom for stolen Bell data

    Economic CBC News
    A pair of malicious hackers say they demanded that Bell pay a $50,000 US ransom to prevent stolen customer data from being shared online, according to a person claiming responsibility for the theft. That person — who communicated with CBC News via encrypted chat using the handle "exodus" — says a ransom email was sent to Bell on May 5, detailing the extent of the breach and the thieves' terms. Source
  • Kinder Morgan announces final investment decision on Trans Mountain pipeline

    Economic CTV News
    VANCOUVER -- Kinder Morgan says it will proceed with the $7.4-billion Trans Mountain pipeline expansion as long as it secures satisfactory financing for the project through its initial public offering. The Texas-based company, in conjunction with its indirect subsidiary Kinder Morgan Canada, announced on Thursday its final investment decision on the project, which is conditional on the successful completion of the IPO. Source
  • Amazon opens first brick and mortar New York bookshop

    Economic CTV News
    Online retail giant Amazon on Thursday opened its first brick and mortar bookstore in New York, selling a limited range of its highest-rated books and letting customers browse products as in times gone by. Amazon, which launched as an online bookseller in 1995 but which now sells everything from designer clothes to groceries, bided its time before venturing into the US cultural capital. Source
  • Ontario threatens its own protectionism in fight against Texas Buy American bill

    Economic CTV News
    TORONTO - Ontario has hired lobbyists in Texas and is threatening protectionist measures of its own as it tries to convince state officials not to pass a Buy American bill. Premier Kathleen Wynne claimed victory last month after a successful Ontario push to stop similar provisions in New York state. Source
  • Alberta Energy Regulator to reconsider Suncor tailings plan it rejected

    Economic CTV News
    CALGARY -- Alberta's energy watchdog has agreed to reconsider its rejection of a plan by oilsands giant Suncor to clean up its tailings ponds. The Alberta Energy Regulator denied the Calgary-based company's applications in March, saying they did not satisfy requirements and a new proposal was needed. Source
  • Bank CEOs say Home Capital issues not widespread

    Economic CTV News
    TORONTO -- The CEOs of two of Canada's biggest banks say liquidity troubles at mortgage lender Home Capital are not indicative of a broader problem, but they are monitoring their mortgage portfolios in light of concerns about high house prices. Source