Gold futures rose Friday, leaving prices higher to end the week, after the Federal Reserve announced a policy shift Thursday that would allow employment and inflation to run hotter than in the past, implying that the central bank may keep benchmark interest rates lower for longer.
The Fed is shifting to a policy of average inflation targeting which would effectively see policy makers end the practice of preemptively hiking interest rates to stave off inflation. Instead, the Fed would allow inflation to run above its 2% target to make up for periods when inflation runs below it — signaling that a long period of ultralow interest rates lies ahead.
After volatile trading on Thursday, which briefly sent bullion surging higher immediately after the announcement by the Fed, gold ended sharply lower, with investors attributing that decline to investors profit-taking and attempting to interpret the implications of the historic move by the Fed, according to some metals enthusiasts.
“Gold prices were sent on a roller-coaster ride last night as investors tried to decipher what the Fed’s shifting stance on inflation could mean for the yellow metal, with prices soaring above $1,970 before careening below $1,910 in the immediate aftermath,” wrote Han Tan, market analyst at FXTM, in a research note.
For the week, gold saw a weekly rise of 1.4%, while silver tallied a weekly advance of nearly 4%, based on last Friday’s most-active contract settlements, according to Dow Jones Market Data.
Gold continues to be viewed as the “haven of choice, with silver closely following” as everywhere investors look, there are old worries, such as those tied to the global economy and pandemic, combining with new ones, such as the resignation of Japanese Prime Minister Shinzo Abe and the upcoming elections, said George Gero, managing director at RBC Wealth Management, in a daily note. This leads to the need for more asset allocations, “so $2,000 gold and $30 silver [are] coming soon.”
Precious metals also drew some support Friday from a weakening U.S. dollar that fell on the back of strength in the Japanese yen on the back of news that Prime Minister Shinzo Abe resigned due to his worsening health.
The benchmark Nikkei 225
closed down 1.4% and the yen
strengthened to change hands at 105.45, surging 1.1%. A broader measure of the dollar against a half-dozen currencies, including the yen, was down 0.6%, as gauged by the ICE Dollar Index
A weaker dollar can make precious metals that are priced in the currency more appealing on a relative basis.
Overall, gold and silver prices have been mostly marching higher as investors purchase precious metals as a perceived safe play against the uncertainty created by the COVID-19 pandemic. Responses to the deadly disease by governments and central banks have also bolstered appetite for gold, which is seen as a hedge against money printing and an asset the propers in a low-rate environment.
In U.S. economic reports, data on personal-consumption expenditure rose 0.3% in July, while core inflation for the month rose 0.3%, and a reading of consumer spending rose 1.9% last month, while personal incomes climbed 0.4% in July. The final consumer sentiment survey in August, meanwhile, rose to 74.1 from a preliminary reading of 72.8, according to the University of Michigan.
Back on Comex, December copper
added 1% to $3.0195 a pound, with prices based on the most-active contract prices settling above $3 for the first time since Aug. 19 and tacking on 3.5% for the week.
rose 1.3% to $940 an ounce, with most-active contract prices up 1.5% for the week, while December palladium
climbed 1.9% to $2,231.50 an ounce, for a weekly most-active contract advance of nearly 2.4%.
Feds pledge $440 million to join international vaccine program – CTV News
Canada will spend $440 million to join an international program which is trying ensure COVID-19 vaccines aren’t just hoarded by rich countries, Prime Minister Justin Trudeau said Friday.
But Canada is spending more than twice that to gain private access to millions of doses of some of the most promising vaccines in development. That includes a sixth deal announced Friday with AstraZeneca for up to 20 million doses of its vaccine candidate, which is in the third and final phase of clinical trials.
The federal government has committed more than $1 billion to buying vaccines for Canada, much of which is not refundable even if the vaccines are never approved.
Trudeau also unveiled Canada’s financial commitment for the COVID-19 Vaccine Global Access Facility, known as COVAX.
Canada is among 64 high-income countries that have committed to joining COVAX.
Canada is joining both parts of the initiative: one which secures access to millions of doses of vaccines for Canada, and the other which has wealthier nations pooling their funds to help lower and middle-income countries secure doses as well.
The $440 million is split equally between the two parts, with half securing 15 million doses of vaccines for Canada from COVAX, and the other half going to help poorer countries get doses as well.
“Canadians must have access to a safe and effective vaccine against COVID-19 no matter where it is developed,” Trudeau said at a news conference in Ottawa.
But he said to eliminate the virus in Canada, it also needs to be eliminated around the world.
The Canadian Coalition for Global Health Research and the Canadian Society for International Health have both criticized Canada for acting to buy doses of vaccine for itself, saying it hinders efforts to ensure successful vaccines are distributed fairly around the world.
This report by The Canadian Press was first published Sept. 25, 2020.
S&P 500, Dow set to extend longest losing spree in a year – Reuters
(Reuters) – Wall Street’s main indexes rose on Friday, led by technology-related stocks, but were still set for their longest weekly losing streak in a year as fears about the coronavirus’ impact on the economy weighed on investor sentiment.
Shares of tech mega-caps including Facebook Inc FB.O, Alphabet Inc GOOGL.O, Amazon.com Inc AMZN.O, Apple Inc AAPL.O and Netflix Inc NFLX.O, which are perceived as relatively safe assets at a time of economic uncertainty, climbed between 0.4% and 1.9%.
“We’ve been down for a number of days and the market is such that it’s looking for opportunities to buy,” said Barry James, portfolio manager at James Investment Research in Ohio.
All the three major U.S. stock indexes are on course for their fourth straight week of declines – their longest weekly losing streak since August 2019.
Volatility .VIX has also shot up as investors look for clarity on more Congressional stimulus ahead of the Nov. 3 presidential election.
At 11:40 a.m. ET, the Dow Jones Industrial Average .DJI was up 97.00 points, or 0.36%, at 26,912.44, the S&P 500 .SPX was up 19.02 points, or 0.59%, at 3,265.61, and the Nasdaq Composite .IXIC was up 116.18 points, or 1.09%, at 10,788.44.
The S&P industrials sector .SPLRCI added 0.8% as data showed new orders for key U.S.-made capital goods jumped in August, while a 0.7% slide in energy stocks .SPNY put them on course for one of their worst weeks since the coronavirus-driven crash in March.
Costco Wholesale Corp COST.O fell 2.6% as the warehouse chain recorded high coronavirus-related costs for the second straight quarter.
Boeing Co BA.N gained 3.6% after Europe’s chief aviation safety regulator said the planemaker’s grounded 737 MAX could receive regulatory approval to resume flying in November and enter service by the end of the year.
Novavax Inc NVAX.O jumped 11.3% after the drugmaker launched a late-stage trial of its experimental COVID-19 vaccine in the UK.
Advancing issues outnumbered decliners 1.29-to-1 on the NYSE and 2.09-to-1 on the Nasdaq.
The S&P index recorded one new 52-week high and no new low, while the Nasdaq recorded 14 new highs and 30 new lows.
Reporting by Devik Jain in Bengaluru; Editing by Arun Koyyur and Anil D’Silva
Canada's top growing companies: 2020 – The Globe and Mail
Welcome to our second annual ranking of Canada’s Top Growing Companies. The 400 businesses on this list sprawl
across sectors, from fashion to finance, and manufacture everything from medical testing devices to organic
Much of the success celebrated in these pages occurred before a global pandemic changed how most
companies operate. But as you will read, many of these businesses were able to adapt, innovate and even expand
despite the challenges posed by these past few months.
As individual companies, and the entire country, work to
rebuild, there’s more need than ever to share the stories of entrepreneurial success—and the innovations and
strategies that made it possible.
Launched in 2019 by The Globe and Mail, the program ranks participating private and public Canadian businesses on three- year revenue growth. Canada’s Top Growing Companies is a voluntary program. We accepted entries from businesses through May 31, 2020.
Applicant companies had to submit a ballot, complete a full application survey and supply supporting financial documentation to our research team for both 2016 and 2019. We evaluated companies based on the most recent fiscal year for which financial statements were available, with a latest possible year-end date of April 30, 2020. In some unique cases, companies were evaluated on calendar years instead of fiscal.
In order to qualify, a company had to have at least $2 million in annual sales in its most recent fiscal year. Companies had to be for-profit, Canadian-run, headquartered in Canada and independent. In rare cases in which applicant companies were recently acquired, they were admitted only if the acquisition occurred following the close of the companies most recent fiscal year.
Franchisors were ranked on corporate revenue only, not systemwide sales. All revenue figures are in Canadian dollars, unless otherwise indicated.
Research was conducted by Deborah Aarts and Stefanie Marotta. To learn more about the program or to apply for the 2021 ranking, please visit tgam.ca/TopGrowing.
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