September 19 2014

“There Is No Such Uncertainty As A Sure Thing” – Robbie Burns, Scottish Poet

 

Scotland Stays, TSX Falls

The Toronto stock market pulled back sharply Friday, weighed down by metals and mining, gold and materials stocks. The S&P/TSX composite index dropped 199.1 points to 15,266.40, while the Canadian dollar dipped 0.13 of a cent to 91.29 cents (U.S.). The gold sector was down by 2.53% as bullion lost $10.30 to $1,216.60 an ounce.  The big decline in the Toronto exchange came despite optimism in most global markets following Scotland’s decision to remain part of the United Kingdom. Fifty-five per cent of Scots voted against independence in the referendum Thursday, compared with 45% in favour of separation. The news gave relief to investors because it avoids uncertainty in the U.K economy and markets over the future value of the pound and public debt, among other issues. Meanwhile, U.S. markets were mixed amid the stability from the vote and the IPO involving Chinese e-commerce company Alibaba. The Dow Jones Industrial was ahead 14.52 points at 17,280.51 after closing at an all-time high on Thursday. The Nasdaq dipped 13.64 points at 4,579.79, and the S&P 500 index lost 0.86 of a point to 2,010.50.

 

Inflation Remains Unchanged

The rise in the cost of living held steady in August with the annual inflation rate coming in at 2.1%, Statistics Canada said Friday. That was unchanged from July, when the federal agency’s consumer price index also rose by 2.1% over a 12-month period. Statistics Canada says prices were higher in all 12 categories it looks at, with shelter costs leading the way, up 2.8% in August, down slightly from the 3.0% increase seen in July. Food prices were up 2.2%. Fresh fruit and vegetables recorded smaller increases in August than they did in July, but meat cost 9.3% more than it did a year ago. As well, prices were up in every province, with Saskatchewan seeing the highest gain and Prince Edward Island the smallest. Core inflation, the number the Bank of Canada closely monitors and which excludes some items from the volatile energy and food categories, rose by 2.1%, after an increase of 1.7% in July. Economists had expected a gain of 1.8%, according to Thomson Reuters. On a seasonally adjusted basis, inflation was up 0.1% in August compared with the previous month, when it fell by 0.1%. The latest read on inflation came as Statistics Canada also reported that wholesale sales fell 0.3% to $52.9 billion in July. Economists had expected a gain of 0.6%, according to Thomson Reuters.

 

Market Update As Of September 19 2014

The TSX closed at 15280, down -252 points or -1.62% over the past week. YTD the TSX is up 12.17%.

The DOW closed at 17280, up 292 points or 1.72% over the past week. YTD the DOW is up 4.24%.

The S&P closed at 2010, up 24 points or 1.21% over the past week. YTD the S&P is up 8.77%.

The Nasdaq closed at 4580, up 12 points or 0.26% over the past week. YTD the Nasdaq is up 9.65%.

Gold closed at 1227, down -13.00 points or -1.05% over the past week. YTD gold is up 1.91%.

Oil closed at 92.45, up 0.33 points or 0.36% over the past week. YTD oil is down -6.25%.

The USD/CAD closed at 1.09502, down -0.0141 points or -1.27% over the past week. YTD the USD/CAD is up 2.99%.

 

Sources: Bloomberg; advisor.ca; Investment Executive; Statistics Canada