“Those Who Bring Sunshine Into The Lives of Others Cannot Keep It From Themselves” -James M. Barrie



Oil Price Rise Lifts TSX

The Toronto stock market was higher Friday amid rising oil prices and hopes that China’s slowing growth will persuade officials to take further steps to energize the world’s second-biggest economy.  The S&P/TSX composite index gained 59.78 points to 11,485.26 while the TSX Venture Exchange edged up 7.56 points to 1,176.76.  The Canadian dollar was up 0.41 of a cent to 98.58 cents U.S. Stronger than expected earnings from banking giant JPMorgan Chase helped send New York markets higher even as it massively increased the loss from a huge trading blunder in May. The biggest U.S. bank earned US$5 billion, or $1.21 per share, for the second quarter, much higher than the 76 cents that analysts expected.  It also reported that its loss from an embarrassing trading misstep has grown to $4.4 billion, more than double the bank’s original estimate of $2 billion.

Commodities gained even as China’s economic growth fell to a three-year low of 7.6 per cent during the second quarter, in line with expectations.  Other Chinese data for June showed industrial production slowing to 9.5 per cent year over year while retail sales eased a bit but beat expectations, rising 13.7 per cent year over year.  In recent weeks, the Chinese authorities have cut interest rates, lowered banks’ reserve requirements to encourage lending and increased spending on infrastructure projects. More is now expected. The Chinese economy has been a major prop for the global economy still recovering from the 2008 financial collapse and recession.


Market Update as of July 13 2012


The TSX closed at 11515, down -145 points or -1.24% over the past week. YTD the TSX is down -3.68%.

The DOW closed at 12777, up 5 points or 0.04% over the past week.YTD the DOW is up 4.58%.

The S&P closed at 1357, up 2 points or 0.15% over the past week.YTD the S&P is up 7.87%.

The Nasdaq closed at 2908, down -29 points or -0.99% over the past week.YTD the Nasdaq is up 11.63%.

Gold closed at 1588, up 4.00 points or 0.25% over the past week.YTD gold is up 1.47%.

Oil closed at 87.25, up 3.08 points or 3.66% over the past week.YTD oil is down -11.78%.

The USD/CAD closed at 0.9854, up 0.0029 points or 0.30% over the past week.YTD the CAD/USD is up 0.57%.


Sources:  Bloomberg;  Advisor.ca; Statistics Canada; Investment Executive