Economy

Bank of Canada says economy facing prolonged, uneven recovery – Financial Post

Published

4 years ago

June 18, 2020

OTTAWA — The Bank of Canada sees the Canadian economy facing a prolonged and uneven recuperation period with households remaining cautious with their spending until there is a coronavirus vaccine, Deputy Governor Lawrence Schembri said on Thursday.

Schembri, speaking to a business audience, said the central bank expects Canada’s economic recovery to be in two phases: a relatively quick reopening and then a longer recuperation, with the path varying greatly by region. He made no mention of future policy moves.

“The uncertainty around this recuperation stage is extraordinary and points toward a recovery that will be gradual and long-lasting as this uncertainty slowly dissipates,” Schembri said.

“Cautious spending behavior on the part of households will likely continue until a vaccine becomes available.”

The Bank of Canada, which slashed its key interest rate three times in March to a record-low 0.25%, is prepared to act to support the financial system and underpin the recovery, the deputy governor reiterated.

Fiscal policy will also be needed to target the specific needs of vulnerable households, sectors and regions, Schembri said.

The speech followed a Tuesday appearance by new Bank of Canada Governor Tiff Macklem, who said the bank remains focused on using its policy tools, including low interest rates, to support the Canada’s economic recovery from COVID-19.

The Canadian dollar maintained its earlier decline, down 0.3% at 1.3610 to the greenback, or 73.48 U.S. cents. Money markets do not expect further rate moves this year. (Additional reporting by Fergal Smith in Toronto Editing by Marguerita Choy)

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

16 hours ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

23 hours ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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