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.
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.
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