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

  • Numbers show Alberta economy improving, but no change to $10.8B deficit

    Economic CTV News
    EDMONTON -- Alberta's economy is on the road to recovery and more money is coming in, but there's no change to the government's projected $10.8-billion deficit this year. Finance Minister Joe Ceci says Alberta is going to make $1.5 billion more than expected in the current budget year which ends March 31. Source
  • Average weekly earnings increasing, but not for retail, food and accommodation workers

    Economic CBC News
    The average weekly paycheque for non-farm workers was $961 in December, Statistics Canada says, a figure that has grown by 1.2 per cent last year but belies wide differences between types of workers. Workers in information and cultural industries saw their pay packets increase the most, on average, up by more than 10 per cent last year to $1,350.48 a week. Source
  • Estimated 8,000 millionaires immigrated to Canada last year, report says

    Economic CBC News
    Canada attracted an estimated 8,000 millionaires last year, trailing only Australia and the United States on the list of top destinations, according to a recent report from New World Wealth. Australia drew 11,000 millionaires, while the U.S. Source
  • Lawyer referral fees to be capped in Ontario; advertising rules changing

    Economic CTV News
    TORONTO -- The body that regulates lawyers in Ontario has opted for a cap on referral fees rather than an outright ban, and made various changes to advertising rules. In a vote Thursday, benchers of the Law Society of Upper Canada decided on a yet-to-be-determined cap after considering a report from a working group that delved into the issue of advertising and referral fees -- those a lawyer pays to another lawyer for sending along a client. Source
  • Canada's biggest pulse market in doubt after India rejects extending exemption

    Economic CTV News
    CALGARY -- Canada's top export market for its multi-billion-dollar pea and lentil crops industry is in doubt after India rejected extending a long-standing exemption on pest treatments. Federal Agriculture Minister spokesman Guy Gallant confirmed the Indian government has not granted another six-month exemption that would have crops fumigated on arrival, rather than before export, as has been allowed for more than a decade. Source
  • Australia's highest-paid public servant quits $4.3M job

    Economic CTV News
    CANBERRA, Australia -- Australia's highest-paid public servant announced his resignation Thursday, two weeks after the revelation that he made 5.6 million Australian dollars ($4.3 million) last year sparked a public furor and created a political headache for the government. Source
  • Latvia becomes 1st EU country to sign on to Canada's trade deal

    Economic CBC News
    The journey toward full ratification of Canada's trade deal with the European Union will be long and complicated, but an early step was taken Thursday as Latvia's parliament voted in favour. "We were visionary when we started a decade ago and now this is the right deal at the right time," said International Trade Minister François-Philippe Champagne during a press conference in the capital city of Riga. Source
  • Lessons the tooth fairy can't teach: Allowances can help kids learn financial savvy

    Economic CBC News
    Robin Taub paid her two kids a weekly sum when they were younger in an effort to help teach them basic money skills. Now, they're living away from home at university, managing a budget, and friends tease them for being money-smart kids, she says — a riff on the title of her book, A Parent's Guide to Raising Money-Smart Kids. Source
  • More than 2M knives recalled after reports of blades breaking, injuries

    Economic CTV News
    The kitchenware company Calphalon Contemporary Cutlery is recalling more than two million knives and knife sets in Canada and the United States after reports of blades breaking during normal use or when they are dropped, posing a risk of lacerations. Source
  • Conference Board sees modest economic growth in 2017

    Economic CBC News
    The national economy should seen see a slight pick-up this year, the Conference Board of Canada said in a new report out Thursday. The independent research group said it sees overall growth of 1.9 per cent this year, up from the 1.3 per cent it expects will be reported for last year. Source