Canada Stocks Close Higher; Metals and Mining Cap Gains as Gold Prices Tumble; Stock of The Day - Bombardier


Canadian stocks closed around 46 points higher on Monday, showing upward momentum over the final two hours of the day - after having nearly lost al of their earlier gains - with equity investor sentiment turning positive as concerns in Europe over a Portuguese banks bankruptcy waned. Most sectors were higher, but the influential Metals and Mining bucked the trend as Gold prices tumbled on Monday.

Stock of day was probably Canadian plane maker Bombardier (BBD-B.TO). Monday afternoon, Reuters was citing a leading Union official as saying around 900 unionized Bombardier workers walked off the job at a railcar production facility in Thunder Bay, Ontario, after the parties hit an impasse over pension changes and benefit reductions. This was something of negative news for Bombardier after a day and weekend that offered hope on its CSeries program and sales outlook. Bombardier gained 1.5% on the day.

Of commodities, gold prices reversed all of last weeks gains, tumbling more than $30 per ounce on the comex exchange. Gold prices had neared four-month highs last week as news that a major Portuguese bank was struggling with debt payments reignited worries about Europe's financial system. As fears waned Monday, investors sold gold, pushing the yellow metal to a 3-week low.

Oil prices continued to move lower, as fear over reduced production in Iraq also subsided. Oil prices have declined $7.24 since reaching a high of 107.56 on June 12, 2014.

Credit Card quality improved in Canada according to S&P. Standard & Poor's Ratings Services' Canadian Credit Card Quality Index (Canadian CCQI) was released Monday and showed the charge-off rate decreased to 3.5% in May 2014, down from 3.6% in April. In addition, the 30-plus-day delinquency rate, a leading indicator of charge-offs, declined to 2.2% from 2.4% in April.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

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