“Canada Needs The Senate Like I Need Another Cavity” -Gerald Caplan
TSX Finishes Higher
The Toronto stock market was modestly higher as gold hovered near a recent high. The S&P/TSX composite index lifted 32 points to 12,736. The Canadian dollar dropped 0.32 of a cent to 96.71 cents US after Statistics Canada reported that manufacturing sales fell in June for the fourth time in six months, dropping 0.5% to $48.2 billion. The TSX energy sector was up 0.9% as the September crude contract rose 76 cents to US$108.09 a barrel as unrest in Egypt keeps traders cautious over how it could affect supply through the region. Though not an oil producer, Egypt controls the Suez Canal that links the Mediterranean Sea and Red Sea, giving it a crucial role in maintaining global energy supplies. In the U.S., the Commerce Department reported that builders began work last month on houses and apartments at a faster pace. The seasonally adjusted annual rate of starts was up 6% to 896,000.
European Recession Ends
The European Union has proclaimed an end to its longest ever recession. The 17 countries that use the euro saw economic output grow by 0.3 % in the second quarter, the EU statistics office reported Wednesday. It was the first growth recorded since late 2011. Michael Smedley, a portfolio manager at Morgan, Meighen and Associates, suggested Europe’s improved economic prospects should have a positive effect on the outlook for its economy for the coming months. “You get a very slight show of confidence that has been absent for so long, the market will tend to feed off that a bit,” he said. “So you should get a continuation of moderate improvement in the overall economic state in Europe.”
Market Update As Of August 16 2013
The TSX closed at 12737, up 195 points or 1.55% over the past week. YTD the TSX is up 1.56%.
The DOW closed at 15081, down -345 points or -2.24% over the past week.YTD the DOW is up 15.09%.
The S&P closed at 1656, down -35 points or -2.07% over the past week.YTD the S&P is up 16.13%.
The Nasdaq closed at 3603, down -57 points or -1.56% over the past week.YTD the Nasdaq is up 16.56%.
Gold closed at 1374, up 61.00 points or 4.65% over the past week.YTD gold is down -18.21%.
Oil closed at 107.66, up 1.63 points or 1.54% over the past week.YTD oil is up 16.30%.
The USD/CAD closed at 1.0335, up 0.0044 points or 0.43% over the past week.YTD the USD/CAD is up 4.65%.
Sources: Bloomberg; Investment Executive: advisor.ca