CLOSING BELL: TSX slumps, but Stats Can numbers show economy is growing-
Despite some good news on the nation’s economic growth, Canada’s main stock market was down most of the day.
Stats Canada numbers show the economy grew by 0.4 per cent in February, rebounding from a 0.1 per cent drop the month before. Some analysts say that could be a sign the economy is outpacing Bank of Canada projections.
Speaking of the Bank of Canada, Governor Stephen Poloz says he’s being cautious on when next to raise its key interest rate because of the massive amount of household debt in the country. Canadians owe a little more than $2 trillion. But, Poloz says the growing economy means higher interest rates will eventually be needed.
The TSX spent most of the day down as gains in the materials sectors were offset by among others, lower oil prices and railroad shares, but managed to finish at 15,618, up 11 points. On Wall Street, industrials and energy pulled the Dow Jones down and it spent the entire session in the red, closing at 24,099, a loss of 64 points.
At press time oil is down $1.10 to $67.47 U.S. per barrel, gold is down $14.00 to $1305.20, and the loonie is down a tenth of a cent to 77.75 cents U.S.