Connect with us

Economy

Mandate Letters Outline Action on Economy, Environment and Quality of Life – Government of Nova Scotia

Published

 on

Economy

The Toronto Stock Exchange falls 0.58% to 19,031.64

Published

 on

* The Toronto Stock Exchange’s TSX falls 0.58 percent to 19,031.64

* Leading the index were Laurentian Bank of Canada <LB.TO​>, up 5.6%, goeasy Ltd​, up 4.5%, and Air Canada​, higher by 4.4%.

* Lagging shares were Turquoise Hill Resources Ltd​​, down 7.0%, Silvercrest Metals Inc​, down 5.5%, and New Gold Inc​, lower by 4.8%.

* On the TSX 73 issues rose and 154 fell as a 0.5-to-1 ratio favored decliners. There were 13 new highs and no new lows, with total volume of 171.6 million shares.

* The most heavily traded shares by volume were Enbridge Inc, Suncor Energy Inc and Air Canada.

* The TSX’s energy group fell 1.21 points, or 1.1%, while the financials sector climbed 0.02 points, or 0.0%.

* West Texas Intermediate crude futures rose 0.51%, or $0.31, to $61.66 a barrel. Brent crude  rose 0.43%, or $0.28, to $65.6

* The TSX is up 9.2% for the year.

This summary was machine generated April 22 at 21:03 GMT.

Continue Reading

Economy

Canadian dollars hold on to Wednesday’s rally

Published

 on

Canadian dollars

By Fergal Smith

TORONTO (Reuters) -The Canadian dollar was little changed against its U.S. counterpart on Thursday as a decline in risk appetite was offset by the Bank of Canada‘s more hawkish stance, with the currency holding on to its gains from the prior day.

The loonie was trading nearly unchanged at 1.2500 to the greenback, or 80.00 U.S. cents, having traded in a range of 1.2472 to 1.2534.

It was one of only three G10 currencies to keep pace with the U.S. dollar as U.S. stocks dived on reports that President Joe Biden planned to propose nearly doubling the capital gains tax.

The others were the Swiss franc and the Japanese yen, which are both renowned safe-haven currencies.

“The BoC’s relatively hawkish move yesterday may have moved USD-CAD’s trading band down a notch,” said Ronald Simpson, managing director, global currency analysis at Action Economics, adding that the shift in yield spreads has supported the loonie.

The gap between Canada‘s 10-year yield and its U.S. equivalent has declined to just 3 basis points in favor of the U.S. bond from 19 basis points at the start of the month.

On Wednesday, the Canadian dollar touched its strongest intraday level in one month at 1.2455 after the Bank of Canada signaled it could start hiking interest rates in late 2022. The central bank sharply boosted its outlook for the Canadian economy and cut the pace of bond purchases to C$3 billion a week from C$4 billion.

“I would advise penciling in a further taper (of bond buying) at the July MPR meeting,” Derek Holt, vice president of capital markets economics at Scotiabank, said in a note, referring to the bank’s monetary policy report.

The price of oil, one of Canada‘s major exports, settled 0.1% higher at $61.43 a barrel.

Canada‘s 10-year yield was little changed at 1.522%.

(Reporting by Fergal Smith; Editing by William Maclean and Peter Cooney)

Continue Reading

Economy

Canadian annual inflation rate doubles

Published

 on

By Steve Scherer

OTTAWA (Reuters) – Canada‘s annual inflation rate doubled to 2.2% in March, Statistics Canada said on Wednesday, as the central bank signaled economic slack would likely be absorbed earlier than it had previously forecast.

Previously, the Bank of Canada had said it would be 2023 before inflation returned sustainably to its 2% target. On Tuesday, the central bank said it would happen in the second half of next year. In the meantime, inflation would temporarily breach its target, the bank said.

Part of the March price bounce is due to a statistical effect caused by a sharp deceleration last year during the coronavirus pandemic, Statscan said.

The bank also held its key overnight interest rate at a record low 0.25% as expected.

Analysts polled by Reuters had expected the annual rate to rise to 2.3% in March, up from 1.1% in February. Energy prices gained 19.1% on a year-on-year basis, while inflation excluding gasoline and food rose 0.9% versus a year ago.

“The headline spike, as expected, is largely an energy story, but there are some signs that underlying pressures are starting to show up,” said Nathan Janzen, senior economist at the Royal Bank of Canada.

“The Bank of Canada‘s core measures also moved higher on the month, with two of them very slightly above the Bank of Canada‘s midpoint 2% inflation target,” Janzen said.

CPI common, which the central bank calls the best gauge of the economy’s underperformance, was 1.5%, slightly higher than the 1.4% forecast by analysts.

CPI median rose to 2.1% from 2.0% in February, and CPI trim was 2.2% in March, up from a revised 2.0% in the previous month.

But Derek Holt, vice president of capital markets economics at Scotiabank, said the annual rate is not being driven solely by a statistical effect.

“This isn’t just base effect-driven, it’s pretty remarkable resilience in terms of underlying inflation pressures,” he said.

The bank now expects Canada‘s economy will grow 6.5% in 2021, up from its January forecast of 4.0%, with real GDP growth of 3.7% in 2022, down from a previous forecast of 4.8%.

After the Bank of Canada announcement, the Canadian dollar strengthened 0.9% to 1.2499 to the greenback, or 80.01 U.S. cents, its biggest gain since last June.

 

(Reporting by Steve Scherer; Editing by Paul Simao and Alistair Bell)

Continue Reading

Trending