MID-DAY: TSX drags as crude prices slip; Canadian GDP grows indicating possible economy bloom
Energy shares are dragging, but the economy is growing in Canada. The TSX is down to 15,564 as the price of crude is falling to 67.30 on geopolitical concerns the US would cut its Iranian nuclear deal.
Meanwhile, Canada’s economy is pushing back up as Stats Can reported an increase of.4 per cent in February, up from the .1 per cent drop in January. Analysts say this could indicate the Canadian economy is actually growing faster than predicted by the Bank of Canada. This could lead to a change in mindset on the interest rate, which was kept status quo in April by BoC Governor Stephen Poloz.
And interest rates will be part of the discussion across the border as the US Federal Reserve kicks off a two-day meeting today. US policymakers are not expected to raise the interest rate this time, but could make a decision on the future of interest rate hikes with some analysts suggesting up there could be up to three before the end of the year.
The Loonie is down to 77.48 cents US.