Canadian stocks closed around a dozen points lower on Wednesday,
snapping an eight session winning streak. Most sectors were lower,
led down by Health Care, Telecoms and Metals and Mining, but Energy
and Info Tech and Utilities bucked the trend.
In terms of guessing where the TSX goes from here, it may well
depend on tomorrow's key economic data both in Canada and the
United States. In Canada, we get Q1 Capacity Utilization, April New
Housing Price Index and May Teranet/National Bank housing data as
well as the Bank of Canada's Financial Systems Review. In the
States we get May Retail Sales and Import Price Index, in addition
to Claims data.
Today, although the TSX closed down 12 points at near 14,890, it
was down around the 14,850 mark mid-afternoon, so there appears to
be still some hunger there for Canada stocks, despite recent
Of commodities, crude
continued to rise, edging closer to the US$105 per barrel level on
a WTI basis which in turn helped energy stocks gain traction. Gold
prices also edger higher, trading close to the US$1,260 per ounce
Moody's Investors Service on Wednesday said it revised its
outlook downward on certain debt and deposit ratings of Canada's
largest banks, following the Canadian government's plans to
implement a "bail-in" regime to avoid a taxpayer-funded bailout in
the event of a financial crisis, Reuters reported.
The U.S.-based credit ratings agency reportedly said it revised
its outlook to "negative" from "stable," on the supported senior
debt and uninsured deposit ratings of the banks, which include
Royal Bank of Canada (RY.TO, RY), Toronto-Dominion Bank (TD.TO, TD)
and Bank of Nova Scotia (BNS.TO, BNS), as well as Bank of Montreal
(BMO.TO, BMO), Canadian Imperial Bank of Commerce (CM.TO, CM) and
National Bank of Canada (NA.TO).
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