Daily Wrap-up: TSX dips despite gains for oil, materials

TSX dips despite gains for oil, materials
Oil prices gained Monday as Saudi Arabia said it would make deeper cuts to output in August to help support the market. Gold prices also gained but it was one of its Canadian producers making headlines.

Barrick affiliate Acacia announced that it was being hit with a $190 billion tax bill in Tanzania; the parent company’s share price tumbled almost 5%.

The heavily-weighted financials sector of the main TSX was negative for some of the session before closing higher along with consumer staples and IT. The other 7 sectors closed with losses.

Wall Street closed mixed with only the Nasdaq closing higher. European and Asian markets were also mixed.

The S&P/TSX Composite Index closed down 54.44 (0.36%)
The Dow Jones closed down 66.90 (0.31%)
Oil is trending higher (Brent $48.67, WTI $46.42 at 4.40pm)
Gold is trending higher (1255.40 at 4.40pm)
The loonie is valued at U$0.7997

Canada to lead growth among the G7 this year
Canada will see growth of 2.5% this year, leading the G7 nations, before easing to 1.9% in 2018.

The forecasts from the IMF show a 0.6 percentage point rise from its April projection for 2017, although next year’s figure loses 0.1 of a percentage point.

Global growth should be 3.5% this year and 3.6% in 2018.

Wholesale trade jump to record high
There was a 0.9% jump in wholesale trade in May, up to a record $61.6 billion. In volume terms, wholesale sales increased 0.8% from April to May.

Statistics Canada reported Monday that the miscellaneous subsector (up 2.6% to $8 billion) and the motor vehicle and parts subsector (up 1.4% to $11.6 billion) contributed the most to the advance.

Six of the seven subsectors gained with machinery, equipment and supplies the exception.