“I Tell My Accountant, If You Are In Doubt About Taxes, Pay More” -Arnold Schwarzenegger
Toronto Has Slight Gain – Things Look Up In China and Europe
The Toronto stock market eked out a mild gain Friday as shares of BlackBerry-maker Research In Motion rose ahead of its planned new smartphone launch. The S&P/TSX composite index moved up 2.44 points to 12,602. The Canadian dollar rose 0.01 of a cent to 101.58 cents US after Statistics Canada reported that the country’s trade deficit with the world jumped to $2 billion in November. In New York, the Dow Jones industrials gained 17.21 points to 13,488 while the Nasdaq was 3.87 points higher at 3,125.63. The S&P 500 index gave back 0.07 of a point to 1,472.05, remaining at the five-year high point reached on Thursday.
On Thursday China trade figures were stunningly strong. Exports rose 14.1% and imports grew 6%, picking up considerable pace from November when exports rose a modest 2.9 per cent and imports were flat. A broad measure of Chinese credit growth also rose sharply. The World Bank predicts 2013 economic growth of 7.5 per cent in China, which is pretty similar to 2012.
In Europe the European Central Bank president Mario Draghi said that the euro area economy will slowly return to health in 2013 as it benefits from a “positive contagion” of good news – highlighted by retreating borrowing costs by countries such as Spain. On Thursday, the yield on Spain’s 10-year government bond fell 23 basis points, to less than 4.9 per cent, down from 5.9 per cent as recently as November.
Market Update as of January 11 2013
The TSX closed at 12602, up 61 points or 0.49% over the past week. YTD the TSX is up 0.49%.
The DOW closed at 13488, up 53 points or 0.39% over the past week.YTD the DOW is up 2.93%.
The S&P closed at 1472, up 6 points or 0.41% over the past week.YTD the S&P is up 3.23%.
The Nasdaq closed at 3126, up 24 points or 0.77% over the past week.YTD the Nasdaq is up 1.13%.
Gold closed at 1662, up 5.00 points or 0.30% over the past week.YTD gold is down -1.07%.
Oil closed at 93.72, up 0.66 points or 0.71% over the past week.YTD oil is up 1.24%.
The USD/CAD closed at 0.9841, down -0.0038 points or -0.38% over the past week.YTD the USD/CAD is down -0.35%
Sources: Bloomberg; globeadvisor; advisor.ca