Loonie flirts with 73 cents, TSX also rises

TORONTO -- The Toronto stock market and the loonie were both ahead for a second consecutive session Thursday as metal prices continued to trend higher in the face of a weakening U.S.

See Full Article

dollar.

At mid-afternoon, the S&P/TSX composite index was up 148.01 points at 12,741.03, its second triple-digit increase in as many days.

The Canadian dollar was also higher for a second day, up 0.15 of a U.S. cent at 72.76 cents US after having soared 1.32 cents Wednesday in its biggest one-day gain in almost four years.

In New York, markets were mixed, with the Dow Jones industrial average up 18.94 points to 16,355.60, while the broader S&P 500 lost 3.60 points to 1,908.93. The Nasdaq composite fell 15.29 points to 4,488.95.

In commodities, the April gold bullion contract rose $13.70 to US$1,155.00 a troy ounce, while the March copper contract added three cents to US$2.12 a pound, helping make mining issues among the leading advancers on the TSX.

Meanwhile the March oil contract, which enjoyed a big run-up of $2.40 a barrel Wednesday, gave back 60 cents to US$31.68, while March natural gas fell seven cents to US$1.97 per mmBtu.

Some of the recent strength in commodities can be attributed to the falling greenback. Commodities are priced in U.S. dollars so as it falls it makes them more affordable to holders of other currencies.

The U.S. dollar has weakened recently against many other major currencies amid indications of a slowdown in the American economy and growing expectations that the U.S. Federal Reserve will decide against further interest rate increases later this year.

There was some more bad news for the U.S. economic front Thursday as the U.S. Commerce Department reported U.S. factory orders fell 2.9 per cent in December. It was the fourth such contraction in the last five months and closed out a year in which demand for American manufactured goods retreated for the first time in six years.

Meanwhile, the Labor Department reported that U.S. productivity fell three per cent in the fourth quarter in the biggest such quarterly decline in nearly two years.

"The market is starting to price in a small chance of recession, not some realistic chance, but enough of a chance to give investors pause and reposition," Khoa Le, who co-heads a derivatives trading desk at Credit Suisse, told The Associated Press.



Advertisements

Latest Economic News

  • Sugar Mobile not quite dead yet, as analysts dream of more wireless competition

    Economic CBC News
    Sugar Mobile, the small startup provider offering wireless plans for as little as $19 a month that was effectively given a death sentence by the CRTC, is not quite dead yet. And the fact that it still exists — even on life-support and as a shell of its former self — should give hope to Canadians desperate for more competition in the country's wireless sector, according to industry analysts. Source
  • Stocks drop after global share sell-off hits after Wall Street, Europe losses

    Economic CTV News
    HONG KONG - A global stock market sell-off pulled shares lower in Asia on Wednesday as investors grew cautious following losses on Wall Street sparked by a delayed health care vote. Sentiment was dented in Europe by speculation that European Central Bank stimulus may be wound down if conditions improve. Source
  • Canada's big banks admit they overcharged customers — what went wrong?

    Economic CBC News
    On Tuesday, Royal Bank was the last of Canada's five big banks to get slapped with a multi-million dollar penalty for charging customers excess fees for investment products like mutual funds. In some cases, clients were unknowingly overcharged for more than a decade. Source
  • Competition Bureau of Canada gives $4.4B Couche-Tard deal green light

    Economic CTV News
    LAVAL, Que. -- The Competition Bureau of Canada is giving the green light to Alimentation Couche-Tard (TSX.ATD.B) to purchase its American fuel and convenience store rival CST Brands Inc., provided the company sell some of CST's Canadian assets to Parkland. Source
  • Ivanka Trump shoes factory has long hours, low pay and abuse

    Economic CTV News
    GANZHOU, China -- A worker with blood dripping from his head marked a low point in the tense, grinding life at a southeastern China factory used by Ivanka Trump and other fashion brands. An angry manager had hit him with the sharp end of a high-heeled shoe. Source
  • Facebook hits 2 billion users, doubling in size since 2012

    Economic CBC News
    Facebook Inc. said on Tuesday that 2 billion people are regularly using its flagship service, marching past another milestone in its growth from a college curiosity in the United States to the world's largest social media network. Source
  • Royal Bank to repay investors $21.8M for mistakenly charged investment fees

    Economic CTV News
    TORONTO - The Royal Bank of Canada (TSX:RY) has agreed to a deal with Ontario's securities watchdog to repay $21.8 million to clients who were mistakenly charged some investment fees. The Ontario Securities Commission approved Tuesday the no-contest settlement agreement with RBC Dominion Securities Inc. Source
  • Royal Bank to pay back $22M in investment fees it overcharged

    Economic CBC News
    The Ontario Securities Commission says the settlement comes after a compliance review in 2015 found the bank had overcharged some of its customers 'excess fees,' for their investments. (Mark Blinch/Reuters) The Royal Bank of Canada will pay almost $22 million in compensation to clients who were charged excess fees on some mutual funds and investments products. Source
  • Ransomware is infecting computers all across Europe in another major attack

    Economic CBC News
    A major ransomware attack on Tuesday hit computers at Russia's biggest oil company, the country's banks, Ukraine's international airport as well as global shipping firm A.P. Moller-Maersk. Moscow-based cybersecurity firm Group IB said hackers had exploited code developed by the U.S. Source
  • World's first ATM turns to gold on 50th birthday

    Economic CBC News
    Five decades since it heralded a transformation in the way people obtained and used cash, the world's first ATM was turned into gold for celebrations of its fiftieth anniversary. The brainchild of Scottish inventor John Shepherd-Barron, the first ATM (automated teller machine) was opened on June 27, 1967 at a branch of Barclays bank in Enfield, north London, the first of six cash dispensers commissioned by the bank. Source