TSX ends higher for fourth straight day as gold, oil prices climb

TORONTO -- The Toronto stock market ended higher for a fourth consecutive day Thursday, as investors sought safety in gold and remained hopeful that an agreement could be reached between major oil-producing countries to freeze crude output.

See Full Article

The S&P/TSX composite index climbed 64.20 points or 0.5 per cent at 12,931.36.

Gold, materials and real estate were the leading advancers on the TSX, offsetting declines by the metals and mining and energy sectors.

The Canadian dollar fell 0.24 of a U.S. cent to 72.73 cents US.

On the commodity markets, April gold was up $14.90 at US$1,226.30 an ounce. The March crude contract was up 11 cents at US$30.77 per barrel.

Oil prices fluctuated throughout the day after the latest data showed that fuel stockpiles grew last week in the U.S.

Crude prices have climbed recently due to optimism over a possible deal to limit production by some OPEC nations. So far, six countries, including Saudi Arabia and Venezuela, have supported the plan to keep output at January's levels as part of an effort to put a floor in bottoming crude prices.

Iran says it supports the deal but has not agreed to it. The agreement needs all 13 members of OPEC to participate or else it will not go forward.

"Oil production levels in the U.S. have remained surprisingly robust despite very low market prices," said Todd Mattina, chief economist and strategist at Mackenzie Investments.

"That combined with very high inventory levels is going to keep continued downward pressure on oil prices."

Mattina said he continues to have a bearish view on the markets and expects volatility to continue as there's still uncertainty over when the next rate hike will come from the U.S. Federal Reserve.

In other resource markets, the March natural gas contract was down nine cents at US$1.85 per mmbtu and March copper was unchanged at US$2.07 a pound.

Wall Street was negative with the Dow Jones industrial average down 40.40 points to 16,413.43. The broader S&P 500 composite index declined 8.99 points to 1,917.83, while the Nasdaq composite index lost 46.52 points to 4,487.54.

In economic news, the OECD released a report Thursday saying it has cut its growth forecasts for Canada, the U.S. and other economies in the world for the next two years.

It predicts the Canadian economy will grow by 1.4 per cent in 2016, a drop from its previous projection of 2.0 per cent growth for this year.

Canada's economic growth is expected to pick up to 2.2 per cent in 2017, down from the 2.3 per cent that had been forecast earlier.



Advertisements

Latest Economic News

  • Waymo accuses Uber of self-driving car theft

    Economic CBC News
    A self-driving car company founded by Google is colliding with ride-haling service Uber in a court battle revolving around allegations of betrayal, high-tech espionage and greed. The brewing showdown emerged late Thursday in a lawsuit filed in a San Francisco federal court by Waymo, a once-secretive self-driving company hatched by Google eight years ago. Source
  • Ottawa's deficit hits $14 billion nine months into 2016-17 fiscal year

    Economic CTV News
    OTTAWA -- The federal government ran a budgetary shortfall of $14 billion over the first nine months of the fiscal year, compared with a $3.2-billion surplus over the same period a year earlier. The Finance Department's monthly fiscal monitor says federal program expenses between April and December rose $16.7 billion, or 8.8 per cent, compared with the same stretch a year ago. Source
  • Auto parts giant Magna raises concerns about protectionist trade measures

    Economic CTV News
    AURORA, Ont. - Canadian auto parts giant Magna International Inc. (TSX:MG) raised concerns Friday about protectionist trade measures as it reported its latest quarterly results. The Aurora, Ont.-based company says the auto industry is dependent on open borders and the free movement of goods, services, people and capital, particularly in Europe and North America. Source
  • OMERS retirement fund improves investment return in 2016 to 10.3 per cent

    Economic CTV News
    TORONTO -- The OMERS pension fund for nearly half a million public sector workers in Ontario says it achieved a 10.3 per cent net investment return in 2016 -- the highest in several years. The Toronto-based fund manager says its net assets rose by $8.1 billion to $85.2 billion at the end of 2016, making OMERS one of Canada's largest retirement funds. Source
  • 20% higher gas prices push up cost of living to 2.1% pace in January

    Economic CBC News
    The cost of living in Canada rose by 2.1 per cent in the year up to January, a sharp increase from the pace in December. Statistics Canada reported Friday that the annual inflation rate rose to 2.1 per cent last month, from 1.5 per cent. Source
  • Inflation rate in January fuelled by gas prices

    Economic CTV News
    OTTAWA -- A surge in gasoline prices helped push Canada's annual inflation rate well beyond expectations in January to 2.1 per cent -- an increase that coincided with the implementation of new carbon-pricing policies in Ontario and Alberta. Source
  • London takes title of world's most innovative city

    Economic CTV News
    A new ranking has named London the world's most innovative city, after analyzing cities on their potential for creation and implementation of new ideas. In the 10th edition of Melbourne-based outfit 2thinknow's "Innovation Cities Index 2016-2017," the British capital outperformed 500 cities on the list for the second year in a row. Source
  • Toronto makes top 10 list of world's most innovative cities

    Economic CTV News
    Canada’s most populous city has been named one of the top 10 most innovative cities in the world, in a global ranking released on Friday. Toronto placed eighth out of 500 cities for in the 10th annual “Innovation Cities Index” by the Melbourne-based consultancy company 2thinknow. Source
  • Doubts grow over stock market's Trump-inspired surge

    Economic CTV News
    NEW YORK -- How much more can the "Trump Bump" lift the stock market? U.S. stocks have screamed to records since Election Day because investors are expecting Donald Trump's White House to cut taxes for business, make regulations easier for them and goose more growth out of the economy. Source
  • Royal Bank's 1st-quarter profit jumps 24% to $3.03B

    Economic CBC News
    Royal Bank of Canada said Friday its first-quarter net income rose 24 per cent to $3.03 billion. That's compared to the $2.45 billion of net income that RBC reported during the first quarter of last year. Source