TSX Recovers

Home Sales on Rise

Markets in Toronto gained back lost ground by lunch time on Wednesday, as word filtered in that the U.S. government was about to delay tariffs on the auto industry.

The S&P/TSX Composite Index moved into the green 36.75 points to greet noon at 16,321.28

The Canadian dollar inched ahead 0.06 cents to 74.36 cents

The largest percentage gainers on the TSX were units of Boyd Group Income Fund, which jumped $11.75, or 7.7% after reporting quarterly results, to $165.00

Baytex Energy fell one cent to $2.67.

On the economic slate, Statistics Canada said inflation rose 2.0% on a year-over-year basis in April, following a 1.9% increase in March. On a seasonally adjusted monthly basis, the Consumer Price Index rose 0.3% in April.

Meanwhile, the Canadian Real Estate Association said home sales, recorded via Canadian MLS Systems, rose by 3.6% m-o-m in April 2019.

CREA adds, after having dropped in February to the lowest level since 2012, the rebound in sales over the past two months still leaves activity slightly below readings posted over most of the second half of 2018.

ON BAYSTREET

The TSX Venture Exchange added 6.78 points to 607.57

Seven of the 12 Toronto subgroups were higher midday, as information technology climbed 1.5%, industrials rumbled ahead 0.8%, and consumer staples gained 0.4%.

The five laggards were weighed most by gold, fading 0.4%, while communications lost 0.3%, and financials skimmed off 0.2%.

ON WALLSTREET

Stocks rose on Wednesday on news that President Donald Trump plans to delay the implementation of auto tariffs.

The Dow Jones Industrials put some pep in their step, jumping 95.41 points to 25,627.46, after falling as much as 190 points earlier in the session.

The S&P 500 recovered 14.96 points to 2,849.37

The NASDAQ Composite gained 71.69 points to 7,806.18

Reports circulated Wednesday morning that the Trump administration will delay those levies by up to six months. The news, which was first reported by Bloomberg News, sent auto stocks higher. Fiat Chrysler’s U.S.-listed shares rose 1.5% while Ford Motor tacked on 1.3%, and General Motors gained 0.7%.

Overnight, data released in China showed industrial production rose by 5.4% in April on a year-over-year basis, notching the slowest pace of growth since May 2003. Economists expected an expansion of 6.5%. Chinese retail sales also disappointed economists.

U.S. retail sales fell 0.2% in April, the Commerce Department said Wednesday. Economists polled by Dow Jones expected an increase of 0.2%.

Prices for the benchmark 10-year U.S. Treasury gained ground, lowering yields to 2.39% from Tuesday’s 2.41%. Treasury prices and yields move in opposite directions.

Oil prices gained 39 cents to $62.17 U.S. a barrel.

Gold prices dropped a dime to $1,296.20 U.S. an ounce.