TSX Set for Strong Start After Canada GDP Data, But Oil May Weigh
The TSX is likely to open higher on Wednesday, following GDP data that showed Canada's economy expanding in July after shrinking in the first five months of the year. Softer oil prices , however, could limit gains.
The GDP data comes after Canada officially entered recession. Statistics Canada said the economy grew at a faster-than-expected rate of 0.3% in July, boosted by the mining, manufacturing, finance and oil and gas sectors. The country was declared to be in a recession after two consecutive quarters of falling GDP, a state that is now believed to be only short-lived, given the new GDP report.
Meanwhile, oil prices were lower Wednesday, following an unexpected increase in U.S. crude inventories. Stockpiles reportedly rose 4.6 million barrels in the week to Sept. 25. Brent crude was last down 0.25% at US$48.11/barrel, while the WTI slipped 0.51% to US$45.00/barrel.
The TSX gained 32 points at closing on Tuesday, with energy stocks offsetting losses in health care.
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