Loonie closes above 75 cents U.S., TSX gains 89 points

TORONTO -- North American markets closed higher on the final trading day of the week as oil rose and new jobs data out of the U.S.

See Full Article

was stronger than anticipated.

The S&P/TSX composite index rose 88.85 points to 13,212.50, while the loonie gained 0.40 of a cent to 75.05 cents US.

It was the first time since late November that the loonie closed above 75 cents US.

In New York, the Dow Jones industrial average climbed 62.87 points to 17,006.77, while the broader S&P 500 composite index advanced 6.59 points to 1,999.99. The Nasdaq composite rose 9.60 points to 4,717.02.

South of the border, the economy added 242,000 jobs last month, particularly in the construction, retail and health care sectors, according to the latest data from the U.S. Labor Department, which also revised its job estimates for December and January upwards.

Bruce Cooper, chief investment officer of TD Asset Management, said the jobs data was a positive for both the U.S. and the Canadian stock markets on Friday.

"We worry about an environment of relatively low growth," Cooper said.

"So when you get indications that in the biggest economy in the world, which is the United States, things are continuing to move along -- they're not roaring ahead, but they're moving ahead in a reasonable fashion -- that allows the market to breathe a sigh of relief."

Toronto's resource-centric market benefited from a boost in commodity prices Friday. The metals and mining sector of the TSX grew 5.17 per cent, while base metals stocks were up 4.22 per cent. Meanwhile, energy stocks gained 2.98 per cent.

Crude oil, which has been flirting with US$35 a barrel for the last few days, finally closed above that mark -- something it hasn't done since late January. The April contract for benchmark U.S. crude oil rose $1.35 to US$35.92 a barrel.

The rebound in the price of oil helped the TSX slip into positive territory for the year so far this past week.

"Of the major markets, the TSX is the best performing market year-to-date," Cooper said. "Canada clearly has the most resource exposure of any of the major markets, and so it's a beneficiary as the commodity recovers."

Oil has recovered somewhat as rock-bottom prices forced a number of U.S. producers to scale back their drilling, Cooper said.

"The number of drills operating in the United States is down something like 70 per cent from the peak," Cooper said.

In other commodity news, April natural gas gained 2.7 cents to $1.67 per mmBtu, the April gold contract climbed $12.50 to US$1,270.70 per troy ounce and May copper was up seven cents at US$2.28 a pound.



Advertisements

Latest Economic News

  • 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
  • MacDonald, Detwiller to buy satellite imaging company in $4.7B deal

    Economic CTV News
    VANCOUVER -- Canada's leader in space technology, MacDonald, Dettwiler and Associates Ltd. (TSX:MDA), will buy Colorado-based DigitalGlobe, Inc. in a friendly deal valued at about $4.7 billion (US$3.6 billion), including debt. Vancouver-based MDA -- which has supplied robotics for the International Space Station, the Canadarm for the U.S. Source
  • RBC grows first-quarter profit to $3.03 billion

    Economic CTV News
    TORONTO - Royal Bank of Canada (TSX:RBC) boosted its first-quarter net income by 24 per cent to $3.03 billion. That's compared to the $2.45 billion of net income that RBC had during the first quarter of last year. Source