“When I’m In Canada, I feel That This Is What The World Should Be Like” -Jane Fonda
European Union Agreement Boosts Markets
The TSX closed with a triple-digit gain Friday, rising along with global markets as investor sentiment improved after a surprising move by European leaders to take aggressive steps toward solving their debt crisis. The S&P/TSX composite index gained 171.86 points to 11,596.56. The TSX was up 0.62% for the week. EU leaders agreed to pump money directly into stricken banks, let some countries tap into rescue money without submitting to stringent budget requirements and, later, tie European governments closer in economic union. “The agreement is solid step in the right direction for Europe,” said Benjamin Reitzes, senior economist at BMO Capital Markets. “Clearly more steps need to be taken,” said Reitzes, noting that “Eurobonds weren’t even mentioned in the statement.” Still, he said Europe’s moves were “positive steps that should be recognized for what they are … solid progress.”
Wall Street was also buoyed by the news. The Dow Jones added 277.83 points to 12,880.09 and the S&P 500 was up 33.12 points at 1,362.16, while the Nasdaq gained 85.56 points to 2,935.05. The Canadian dollar jumped 1.04 cents to 98.44 cents US as the price of oil and gold both headed higher. The price of oil posted the biggest one-day increase in more than three years. In economic news, Statistics Canada reported Friday that Canada’s economy had a second consecutive month of growth in April, building momentum with a 0.3% increase in gross domestic product compared with March. Also on Friday, the Conference Board of Canada said that its help-wanted index gained 1.1 percentage points in May. That continued an upward trend that began late last year, but one that has weakened recently, partly due to a sizable decline in the index in March.
Blogs This Week:
Market Update as of June 29, 2012
The TSX closed at 11597, up 161 points or 1.41% over the past week. YTD the TSX is down -2.99%.
The DOW closed at 12880, up 239 points or 1.89% over the past week.YTD the DOW is up 5.42%.
The S&P closed at 1362, up 27 points or 2.02% over the past week.YTD the S&P is up 8.27%.
The Nasdaq closed at 2935, up 43 points or 1.49% over the past week.YTD the Nasdaq is up 12.67%.
Gold closed at 1598, up 25.00 points or 1.59% over the past week.YTD gold is up 2.11%.
Oil closed at 84.76, up 4.60 points or 5.74% over the past week.YTD oil is down -14.30%.
The USD/CAD closed at 0.9828, up 0.0066 points or 0.68% over the past week.YTD the CAD/USD is up 0.31%.
Sources: Bloomberg, Statistics Canada, BMO, Advisor ca