“All That We See or Seem is But a Dream Within a Dream” – Edgar Allan Poe
TSX Slumps On Friday
The Toronto stock market finished its last trading day of the month with a major loss amid a widespread decline in the heavily weighted financial sector and a further plunge in the stock price of trouble-plagued Valeant Pharmaceuticals International. The S&P/TSX composite index was down 262.71 points at 13,529.17. The loonie rose 0.53 of a U.S. cent to 76.48 cents U.S. In New York, the Dow Jones industrial average lost 92.26 points to 17,663.54, while the S&P 500 gave back 10.05 points to 2,079.36 and the Nasdaq shed 20.52 points to 5,053.75. On commodity markets, the December benchmark crude oil contract was up 53 cents at US$46.59 a barrel. December gold was down $5.90 at US$1,141.40 an ounce.
Econmy Rebounding From Mild Recession
Canada’s economy grew by 0.1 % in August; the third consecutive monthly gain following five straight months of shrinking as the economy continued to pull out of the mild recession that began at the start of the year. Manufacturing, mining, quarrying, and oil and gas extraction and retail trade all expanded, Statistics Canada reported Friday October 30. The data agency reported that GDP expanded by 0.1% in August, following growth of 0.3% in July and 0.4%in June. Prior to that, the economy had contracted during every month of 2015. On an annualized basis, Canada’s economy expanded at a 0.9 % pace between August 2014 and this past August. Both the monthly and the annualized figure were in line with what economists had been expecting. “Though growth is muted, there is fairly broad breadth to the gains with only two sectors meaningfully dragging on growth,” Scotiabank said, singling out finance and insurance and wholesale trade for much of the weakness. Indeed, not all sectors of the economy expanded in August. In addition to the ones Scotiabank took note of, the arts, entertainment and recreation sector declined, as did the information technology, accommodation and food services, and public administration sectors.
Sources: Bloomberg; Investment Executive; advisor.ca