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Monthly Archives: July 2016

Terry Broaders

Weekly Update July 19 2016

“No Cause Justifies The Killing of Innocent People ” – Albert Camus

 

After 5 Day Rally, Markets Quiet On Friday

North American markets were relatively flat Friday, ending a five-day rally, even as positive economic news emerged from China and the U.S. The loonie finished the day at 77.30 cents US, down 0.23 of a U.S. cent. The S&P/TSX composite index fell by 32.10 points to 14,482.42. For the week the index grew by 1.6%. Year to date the return is +11.32%.

In New York, the Dow Jones industrial average advanced by 10.14 points to 18,516.55, a new record high. Meanwhile, the S&P 500 gave back 2.01 poi nts to 2,161.74 and the Nasdaq composite slipped by 4.47 points to 5,029.59. In commodities, the August contract for crude oil gained 27 cents to US$45.95, while the more heavily-traded September contract climbed 23 cents to US$46.65.
August natural gas was up three cents to US$2.76 per mmBtu and August gold lost US$4.80 to US$1,327.40 per ounce.

 

 

RCMP and CRA Issue Warning On Taxpayer Scam 

The RCMP and the Canada Revenue Agency are warning again about the “taxpayer scam” as Canadians continue to be victimized almost daily. Fraudsters impersonating CRA employees target their victims and demand either personal information, or payment for phony fees or back taxes.   “To date in 2016, almost $2 million has been reported lost by 590 individuals,” says RCMP assistant commissioner Todd Shean, who leads the force’s Federal Policing Special Services.  “And if only 5% of victims report their losses, we can assume that the actual total amount lost to this scam is much, much higher.”  The agencies call on taxpayers to take steps to ensure their personal information remains confidential and to avoid being duped.
“The CRA will never request prepaid cards, ask for information about your passport, health card or driver’s licence, or leave personal information on your answering machine,” adds Diane Lebouthillier, Minister of National Revenue. “Before taking any action, taxpayers should always verify their tax account by checking My Account via the secure CRA portal or by contacting the CRA at 1 800 959-8281. This information, including examples of real scam telephone calls and e-mails, can be easily found on the CRA website,” she says.

 

Sources: Bloomberg; Investment Executive;  advisor.ca,

Terry Broaders

Weekly Update July 12 2016

“Well Done Is Better Than Well Said” – Benjamin Franklin

 

Markets Climb Friday Following Solid U.S. Jobs Figures

Canadian stocks climbed on Friday as a resurgence in U.S. job creation in June showed resilience in the economy of Canada’s largest trading partner, offsetting a decline in the domestic payroll.  The S&P/TSX Composite Index rose 0.89 per cent, or 125.38 points, to 14,259.84 in Toronto. The gains were broad and significant with five of the index’s 10 main sectors notching gains of more than 1 per cent as investors focused on the bumper number from the much larger economy of the United States.

Canada’s job market weakened in June, capping the worst quarter for payrolls in two years. Employment fell by about 700 in June, short of economists’ forecasts for a 5,000 gain, while the jobless rate unexpectedly dropped to 6.8 percent from 6.9 per cent as Canadians left the job market. By contrast, U.S. payrolls surged by 287,000 last month, topping the highest estimate in a Bloomberg survey and accelerating the most since October. The unemployment rate rose to 4.9 per cent as more people entered the workforce. The U.S. is Canada’s largest trading partner by a wide margin, accounting for more than $540-billion in trade last year, according to data compiled by Bloomberg.
U.S. stock markets responded positively to the news, with the Dow Jones industrial average climbing 250.86 points at 18,146.74, the broader S&P 500 composite index advancing 32.00 points to 2,129.90 and the Nasdaq composite gaining 79.95 points to 4,956.76.

 

Most Canadians Would Change Jobs For Better Retirement Benefits 

The latest ADP Canada Sentiment Survey found that retirement benefits like pensions and group registered retirement savings plans can play a big part in an employee’s decision to change jobs. According to the survey, 77% of Canadian workers would consider leaving their current jobs if, all other things being equal, another employer offered a retirement plan.   “These numbers are an indication that employers should pay close attention to what’s important to their employees, and to what is being offered by their competitors,” said Sooky Lee, division vice president and general manager of HR business process outsourcing at ADP Canada. “Most companies track salaries to make sure they are competitive, but many forget about other compensation factors, such as retirement programs.

The survey found that employees in British Columbia were most likely to consider leaving their job for better retirement benefits, with 88% saying they would consider making a change. Those in Quebec were least likely, with only 69% saying they’d consider leaving for better retirement plans. And while most (70%) employees of small companies (2-50 employees) said they’d consider changing jobs for better retirement plans, a far greater percentage of employees at midsize companies with 51-500 employees (86%) and large companies (74%) said they’d consider making a change.  And employers shouldn’t assume that younger employees won’t be as interested in retirement benefits. In fact, the study found no significant difference in interest between millennials and older employees.   “Workers in the 18-to-34 age group are just as interested as their older colleagues in having retirement support,” Lee said.

 

Weekly Market Wrap Up As of July 8 2016

North America
The TSX closed at 14260, up 195 points or 1.39% over the past week. YTD the TSX is up 9.79%.
The DOW closed at 18147, up 198 points or 1.10% over the past week. YTD the DOW is up 4.14%.
The S&P closed at 2130, up 27 points or 1.28% over the past week. YTD the S&P is up 4.21%.
The Nasdaq closed at 4957, up 94 points or 1.93% over the past week. YTD the Nasdaq is down -1.00%.
Gold closed at 1367, up 38.00 points or 0.96% over the past week. YTD gold is up 29.08%.
Oil closed at 45.16, down -3.66 points or -7.50% over the past week. YTD oil is up 21.89%.
The USD/CAD closed at 1.303979, up 0.0140 points or 1.08% over the past week. YTD the USD/CAD is down -5.76%.

Europe/Asia
The MSCI closed at 1644, down -15 points or -0.90% over the past week. YTD the MSCI is down -1.14%.
The Euro Stoxx 50 closed at 2838, down -45 points or -1.56% over the past week. YTD the Euro Stoxx 50 is down -13.16%.
The FTSE closed at 6591, up 13 points or 0.20% over the past week. YTD the FTSE is up 5.59%.
The CAC closed at 4191, down -83 points or -1.94% over the past week. YTD the CAC is down -9.62%.
DAX closed at 9630, down -146.00 points or -1.49% over the past week. YTD DAX is down -10.36%.
Nikkei closed at 15107, down -576.00 points or -3.67% over the past week. YTD Nikkei is down -20.63%.
The Shanghai closed at 2988, up 55.0000 points or 1.88% over the past week. YTD the Shanghai is down -15.57%.

 

Sources: Bloomberg; Investment Executive;  CIBC; advisor.ca,

Terry Broaders

Weekly Update July 5 2016

“If The British Empire and Its Commonwealth Last For a Thousand Years, Men Will Say This Was Their Finest Hour” – Winston Churchill , June 1940
 

TSX Rises For Third Straight Day

Canada’s main stock index closed higher on Thursday as a rally in gold stocks offset losses for financial sector stocks and lift the market for a third straight session.  The index was nearly unchanged for the month of June, but rose 1.2 per cent on the week and 4.2 per cent for the second quarter. Its heavy concentration of gold miners helped limit a selloff in the wake of Britain’s vote to leave the European Union last week.
The S&P/TSX composite index added 27.8 points or 0.2% to 14,064.54, as Canada’s main market was lifted by notable gains from the mining and gold sectors.  Meanwhile, New York also forged ahead for a third straight day as the widely-watched Dow Jones industrials rose 235.31 points to 17,929.99. The broader S&P 500 was up 28.09 points at 2,098.86, while the Nasdaq composite added 63.42 points to 4,842.67. The oil-sensitive Canadian dollar was higher for a third straight session, climbing 0.35 of a U.S. cent to 77.42 cents US despite lower oil prices as the August contract for benchmark North American crude lost $1.55 to US$48.33 a barrel.
The Toronto Stock Exchange will be closed Friday for Canada Day, while New York markets will be shut Monday, July 4, for U.S. Independence Day.

 

Millenials Feeling Confident In Canadian Economic Recovery  

The share of Canadians pessimistic about the country’s economic outlook has reached a 2016 low, driven by steady growth in optimism among the youngest adults.
The Bloomberg Nanos Canadian Confidence Index showed optimism for the economy’s performance over the next six months improved, as the share of respondents expecting weaker growth fell to 24.8%, the lowest since November.  The polling, nearly all of which took place before the Brexit vote that sparked turmoil in markets Friday, is the latest sign of recovery in the Canadian economy. The broad consumer confidence index has risen steadily since the start of the year.

It’s been the youngest Canadians driving optimism in recent weeks. The measure of confidence among those aged 18 to 29 rose to 62, from 61.5 a week earlier, and is up from 53 in April. The index is the highest among that age group, and lowest among those 50 to 59.

After increasing across Canada last week, consumer confidence fell in all but one region – British Columbia, where it rose to 66.6 from 65.1 a week earlier. The westernmost province is forecast to lead, along with Ontario, Canadian growth this year, a Bloomberg survey of economists shows.

The Bloomberg Nanos Canadian Confidence Index is based on a rolling average of telephone polling of 1,000 respondents spread over four weeks. It’s considered accurate within 3.1 percentage points, 19 times out of 20, with larger margins of error for regional and age subsets. The latest round of polling finished on June 24..

 

 

Sources: Bloomberg; Investment Executive;  CIBC; advisor.ca,