News Column

TSX flat as stimulus hints surface

May 26, 2014

Metals, financials lead pack

The Toronto stock market held onto a small advance Monday amid hints about further stimulus measures for Europe and China.

The S&P/TSX composite index was ahead 7.59 points to close Monday at 14,715.69

The Canadian dollar strengthened 0.09 cents to 92.08 cents U.S.

Metals and mining stocks proved the big winners, as Lundin Mining shares soared 14 cents, or 2.4%, to $6.00.

The financials sector was up as traders look to take in earnings from National Bank and Scotiabank on Tuesday, Bank of Montreal on Wednesday and CIBC on Thursday.

Hopes are high for another series of solid reports after Royal Bank and TD Bank posted earnings reports last week that blew past expectations with strong contributions from major divisions and lower loan loss provisions.

As for the banks in question, National shares gathered 28 cents to $46.78, Scotiabank took on 5.5 cents to $68.02

BMO shares picked up four cents to $76.31 and Commerce shares added 15 cents to $98.95.

Royal shares docked a cent to $75.29, while TD shares moved ahead 22 cents to $53.61

Those bank earnings helped push the TSX up 1.3% last week.

The gold sector faded as Iamgold fell one cent to $3.56

The energy sector also moved lower as Imperial Oil gained 31 cents to $54.15, and Suncor fell 15 cents to $42.24.

European Central Bank President Mario Draghi said the bank could engage in large-scale bond purchases to combat the negative spiral of low inflation if need be. Draghi's remarks at a conference held out the prospect for action to stimulate the weak recovery at the ECB's next governing council meeting June 5.

The meeting will take place against the background of a slow recovery in the 18 countries that share the euro currency and concern that Europe may fall into a crippling downward price spiral.

Also, remarks by Chinese Premier Li Keqiang suggested Beijing is preparing further mini-stimulus measures to support the economy. Li said appropriate policy tools and timely fine tuning are being prepared as the world's second biggest economy continues to face "relatively big" downward pressure, the state-run China Daily newspaper said Saturday.


The TSX Venture Exchange grew 6.95 points to 994.90.

Nine of the 14 Toronto subgroups were positive on the session, led by metals and mining, up 0.7%, financials, 0.3% stronger, and information technology stocks, up 0.2%

The five laggards were weighed mostly by health-care stocks, down 0.6%, gold, off 0.3%, and real-estate, down 0.2%.


American markets are shuttered today for Memorial Day

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Source: Baystreet Stock Market Update (Canada)

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