BoC holds interest rates, energy leads TSX lower... BMO earnings up 28 per cent but miss expectations...
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BoC holds interest rates, energy leads TSX lower
The governor of the Bank of Canada announced a hold-steady for interest rates Wednesday and set a generally optimistic tone. In keeping the 0.5 per cent overnight rate, Stephen Poloz talked of the transition for the economy to adjust to low oil prices being almost complete, the improving labour market and robust housing market and consumer spending.
However, he also talked of the uncertainties of geopolitics flagged in the bank’s April report. Exports he said were subdued and growth was likely to moderate in the second quarter compared to the first.
The main TSX index was focused on another bank though, BMO, which announced its latest financial report with higher earnings, but lower than analysts had expected. Financials was one of seven sector groups to close lower, including energy and materials as commodity prices slipped.
Wall Street was slightly higher following the Fed’s FOMC minutes which revealed plans to slowly reduce its balance sheet. Europe closed mostly lower while Asian indexes were broadly higher.
The S&P/TSX Composite Index closed down 57.45 (0.37 per cent)
The Dow Jones closed up 74.51 (0.36 per cent)
Oil is trending higher (Brent $53.92, WTI $51.30 at 4.15pm)
Gold is trending lower (1257.20 at 4.15pm)
The loonie is valued at U$0.7450
BMO earnings up 28 per cent but miss expectations
The Bank of Montreal was the first of Canada’s big banks to report its first quarter earnings Wednesday.
Net profit was up 28 per cent year-over-year to $2.74 billion ($1.84 per share), adjusted net profit was up 12 per cent to $1.29 billion ($.1.92 per share).
The results missed analysts’ expectations and despite continued strength in Canadian business the bank says its US loan and deposit growth moderated. However, it expects that to improve.
"We remain confident in our ability to grow and create value in an evolving environment," concluded CEO Bill Downe.
The governor of the Bank of Canada announced a hold-steady for interest rates Wednesday and set a generally optimistic tone. In keeping the 0.5 per cent overnight rate, Stephen Poloz talked of the transition for the economy to adjust to low oil prices being almost complete, the improving labour market and robust housing market and consumer spending.
However, he also talked of the uncertainties of geopolitics flagged in the bank’s April report. Exports he said were subdued and growth was likely to moderate in the second quarter compared to the first.
The main TSX index was focused on another bank though, BMO, which announced its latest financial report with higher earnings, but lower than analysts had expected. Financials was one of seven sector groups to close lower, including energy and materials as commodity prices slipped.
Wall Street was slightly higher following the Fed’s FOMC minutes which revealed plans to slowly reduce its balance sheet. Europe closed mostly lower while Asian indexes were broadly higher.
The S&P/TSX Composite Index closed down 57.45 (0.37 per cent)
The Dow Jones closed up 74.51 (0.36 per cent)
Oil is trending higher (Brent $53.92, WTI $51.30 at 4.15pm)
Gold is trending lower (1257.20 at 4.15pm)
The loonie is valued at U$0.7450
BMO earnings up 28 per cent but miss expectations
The Bank of Montreal was the first of Canada’s big banks to report its first quarter earnings Wednesday.
Net profit was up 28 per cent year-over-year to $2.74 billion ($1.84 per share), adjusted net profit was up 12 per cent to $1.29 billion ($.1.92 per share).
The results missed analysts’ expectations and despite continued strength in Canadian business the bank says its US loan and deposit growth moderated. However, it expects that to improve.
"We remain confident in our ability to grow and create value in an evolving environment," concluded CEO Bill Downe.
