“Pretend Inferiority and Encourage His Arrogance” -Sun Tzu, philosopher & military strategist

 

TSX Climbs On Commodity Prices

Higher commodity prices propelled the Toronto stock market to a solid gain Friday as both the energy and metals sectors finished in positive territory. The S&P/TSX composite index rose 68.48 points to close at 14,942.41, marking a climb of 1.4 per cent over the week. The loonie moved ahead 0.92 of a U.S. cent to 79.50 cents after Canada’s latest inflation figures showed lower gas prices offset higher prices for nearly everything else. In the U.S. the Nasdaq composite index jumped to the highest level in 15 years, nearly wiping out its losses since the end of the dot-com bubble.  The Nasdaq composite advanced 0.7 per cent or 34.04 points to 5,026.42, after coming to within 7 points of its all-time high set in March, 2000.  The loonie moved ahead 0.92 of a U.S. cent to 79.50 cents after Canada’s latest inflation figures showed lower gas prices offset higher prices for nearly everything else. Canada’s annual inflation held steady at 1.0 per cent in February, in line with analyst estimates. Statistics Canada said lower gasoline prices were a major factor and the inflation rate would have been 2.2 per cent if they had been excluded.

 

Europe Recovery Underway

European Central Bank head Mario Draghi says “a sustained recovery is taking hold” in Europe a recovery he says must be used to complete the 19-country euro currency union and fix its problems for good.  Draghi adds that member countries should use the breathing space given them by the central bank’s stimulus efforts to pass tough structural reforms that would make their economies more business-friendly so they can grow and prosper. Eurozone countries must “stand on their own two feet” because the eurozone doesn’t provide for budget transfers from richer countries — the way U.S. states that suffer recessions can depend on tax transfers through the federal government.

 

Market Update As of March 20 2015

The TSX closed at 14942, up 210 points or 1.43% over the past week. YTD the TSX is up 1.27%.

The DOW closed at 18128, up 379 points or 2.14% over the past week. YTD the DOW is up 1.65%.

The S&P closed at 2108, up 55 points or 2.68% over the past week. YTD the S&P is up 2.43%.

The Nasdaq closed at 5026, up 154 points or 3.16% over the past week. YTD the Nasdaq is up 6.33%.

Gold closed at 1183, up 27.00 points or 2.34% over the past week. YTD gold is up 0.94%.

Oil closed at 46.29, up 1.15 points or 2.55% over the past week. YTD oil is down -12.15%.

The USD/CAD closed at 1.256692, down -0.0216 points or -1.69% over the past week. YTD the USD/CAD is up 7.09%.

 

Sources: Bloomberg; Investment Executive; advisor.ca