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Statistics Canada to say today how country's economy fared in third quarter of 2020 – CKPGToday.ca

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By Canadian Press

Dec 1, 2020 1:08 AM

OTTAWA — The national statistics office will say this morning how much Canada’s domestic economy bounced back in the third quarter of the year.

The Canadian economy suffered its worst three-month stretch on record in the second quarter as the economy came to a near halt in April before starting to recover in May and June.

Expressed at an annualized rate, real gross domestic product fell 38.7 per cent in the second quarter, the worst posting on record.

The rebound is expected to be equally sharp in the ensuing three-month stretch over July, August and September.

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Economy

Canadian dollar steadies

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Canadian dollar

The Canadian dollar was little changed against its U.S. counterpart on Monday, consolidating some recent gains as Wall Street edged lower and domestic data showed activity easing in Canada‘s red-hot housing market in April.

The loonie was trading nearly unchanged at 1.2100 to the greenback, or 82.64 U.S. cents. Last Wednesday, it touched a six-year high at 1.2042.

Canadian home sales fell 12.5% in April from March, with the average selling price also declining slightly on the month, data from the Canadian Real Estate Association showed.

Separate data from the Canadian Mortgage and Housing Corporation showed housing starts falling 19.8%.

U.S. stocks slipped as investors shifted their focus to retail earnings this week for clues on the strength of consumer spending.

Canada sends about 75% of its exports to the U.S. including oil and lumber. As U.S. Trade Representative Katherine Tai prepared to meet her Canadian and Mexican counterparts on Monday to review progress in the new North American trade agreement, she was under pressure from home builders and lawmakers to cut U.S. tariffs on Canadian lumber.

U.S. crude prices were up 0.20% at $65.5 a barrel as European economic reopenings offset gloom from surging COVID-19 cases in Asia and underwhelming Chinese manufacturing data.

Canada‘s inflation report for April is due on Wednesday which could offer clues on the Bank of Canada policy outlook.

If the Canadian dollar continues to rise, it could create headwinds for exports and business investment as well as affecting monetary policy, BoC Governor Tiff Macklem said last Thursday.

Speculators have raised their bullish bets on the Canadian dollar to the highest since November 2019, data from the U.S. Commodity Futures Trading Commission showed on Friday.

Canadian government bond yields were higher across a steeper curve. The 10-year rose 1.5 basis points to 1.578%.

 

(Reporting by Fergal Smith; Editing by Raissa Kasolowsky)

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Economy

Toronto Stock Exchange futures point to lower open as crude weakens

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Toronto Stock Exchange

Futures for Canada‘s main stock index fell on Monday, tracking weakness in crude prices, while sentiment across global markets was subdued on inflation pressures.

Brent crude and U.S. West Texas Intermediate (WTI) crude were both down 0.17%. [O/R]

June-quarter futures on the S&P/TSX index were down 0.48% at 7:00 a.m. ET.

Securities Foreign data for March is due at 8:30 a.m. ET.

The Toronto Stock Exchange’s S&P/TSX composite index ended 1.21% higher at 19,366.69 on Friday.

Dow Jones Industrial Average e-mini futures were down 0.39% at 7:00 a.m. ET, while S&P 500 e-mini futures had lost 0.34% and Nasdaq 100 e-mini futures were down 0.38%.

TOP STORIES [TOP/CAN]

Canada‘s Centerra Gold said on Sunday it had initiated binding arbitration against Kyrgyzstan government, after the parliament passed a law allowing the state to temporarily take over the country’s biggest industrial enterprise, the Kumtor gold mine operated by Centerra.

ANALYST RESEARCH HIGHLIGHTS [RCH/CA]

Bombardier: ATB Capital Markets raises to “speculative buy” from “sector perform”

Pan American Silver: National Bank of Canada raises to “outperform” from “sector perform”

SNC-Lavalin Group Inc: RBC raises target price to C$40 from C$33

COMMODITIES AT 7:00 a.m. ET

Gold futures: $1,850.4; +0.67% [GOL/]

US crude: $65.27; -0.17% [O/R]

Brent crude: $68.59; -0.16% [O/R]

U.S. ECONOMIC DATA DUE ON MONDAY

0830 NY Fed Manufacturing for May: Expected 23.90; prior 26.30

1000 NAHB Housing Market Index for May: Expected 83; prior 83

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report [.TO]

Canadian dollar and bonds report [CAD/] [CA/]

Reuters global stocks poll for Canada

Canadian markets directory

($1= C$1.21)

 

(Reporting by Amal S in Bengaluru; Editing by Vinay Dwivedi)

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Economy

Britain’s pension fund USS invests 225 million euros in Spanish renewables

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British private pension fund Universities Superannuation Scheme (USS) said on Monday it has invested 225 million euros ($273 million) to take a 50% stake in Bruc Energy, which develops renewable energy projects in Spain and Portugal.

The inflow of cash into renewables in the Iberian peninsula is an encouraging sign for the industry after recent setbacks.

Renewable power group Opdenergy shelved an initial public offering two weeks ago citing “unstable conditions in markets” and shares of rival Econener plummeted 15% on their first day of trading a few days earlier.

Bruc Energy, which was created in Spain by Canadian pension fund OPTrust and Spanish businessman Juan Bejar, is planning to develop solar projects in Spain and Portugal for a total potential capacity of 4,000 megawatts.

“The long-term nature of solar and the steady returns make renewables attractive to a pension scheme needing to pay pensions for years to come”, Gavin Merchant, USS’s co-head of direct equity, said in a statement.

The transaction was advised by Royal Bank of Canada (RBC), Greenhill and Nomura.

($1 = 0.8229 euros)

 

(Reporting by Cristina Galán, editing by Inti Landauro and Emelia Sithole-Matarise)

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