“What Kills A Skunk Is The Publicity It Gives Itself ” – Abraham Lincoln
Toronto’s S&P/TSX Dragged Down By The Gold Sector
Toronto’s main stock index fell Friday, dragged down by weakness in the gold sector. The S&P/TSX composite index dropped 58.72 points to 14,584.99, as gold stocks shed nearly 3%. The December gold contract fell $2.10 to US$1,255.50 an ounce. The Canadian dollar was at 76.07 cents US, up 0.34 of a U.S. cent. U.S. stocks ended little changed on Friday, losing ground late after Federal Reserve Chair Janet Yellen’s comments on the economy. Financial shares finished up, giving the S&P 500 its biggest boost after stronger-than-expected bank results, but gave up most of their early gains. Healthcare shares led declines. Yellen, in a speech at a conference of policymakers and academics, laid out the deepening concern at the Fed that U.S. economic potential is slipping – and may need aggressive steps to rebuild it. In New York, the Dow Jones industrial average was up 39.44 points at 18,138.38, the S&P 500 gained 0.43 points at 2,132.98, and the Nasdaq composite rose 0.83 points at 5,214.16.
For the week, the TSX was up slightly by 0.12 per cent, the Dow was down 0.6 per cent, the S&P 500 was down 1 per cent and the Nasdaq fell 1.5 per cent.
Housing Starts Pick Up In Most Regions
The pace of Canadian housing construction starts picked up nationally in September despite a decline in Ontario. The Canada Mortgage and Housing Corp. says the seasonally adjusted annual rate of starts was 220,617 in September, up from 184,201 units in August. CMHC says construction of urban multiple-unit dwellings such as townhouses, condominiums and apartments were the main reason for the increase in most regions, such as in Quebec. Quebec saw the largest gain in housing starts last month, due to the development of new rental apartments for seniors.
There were also increases in British Columbia, the Prairies and Atlantic Canada. However, Toronto was an exception: its seasonally adjusted rate dropped to 30,232 units from 40,406 units in August, mainly as a result of fewer apartment starts. Plus, several smaller cities across the province also recorded declines from one month to the next. As a result, Ontario’s overall activity fell to 67,426 housing starts in September, from 70,262 units in August.
Sources: Bloomberg; Investment Executive; advisor.ca, CMHC