TSX gains in day of cautious markets... Household debt, housing market has become riskier...
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TSX gains in day of cautious markets
Toronto’s main stock index was one of the strongest among global markets Thursday as investors focused on Trump, the ECB and the UK election.
Home Capital and Valeant were among Canada’s best performers with the former subject to takeover speculation and the latter picked up $930 million for its iNova division.
Healthcare led the gains for the TSX with IT and financials also posting strong gains. Materials was the weakest sector group as gold prices eased.
Wall Street closed flat having gained earlier as sacked FBI director gave his testimony to the Senate. European indexes were lower as the ECB held interest rates and the UK election took place.
The S&P/TSX Composite Index closed up 50.95 (0.33 per cent)
The Dow Jones closed up 8.84 (0.04 per cent)
Oil is trending higher (Brent $47.94, WTI $45.71 at 4.45pm)
Gold is trending lower (1281.70 at 4.45pm)
The loonie is valued at U$0.7405
Household debt, housing market has become riskier
The Bank of Canada has reported its Financial System Review and warned that household debt and the housing market have both increased in vulnerability over the last 6 months.
Governor Stephen Poloz said that “the financial system remains resilient, and macroeconomic conditions continue to improve.”
Household debt increases have been driven by mortgage lending especially in Toronto and Vancouver. While the bank says that credit quality has improved in the insured mortgage market, it also says the uninsured mortgage market is increasing with some mortgages showing “risky characteristics.”
For the housing market, Governor Poloz said that macroprudential and housing policy measures are expected to mitigate the risk from rising house prices.
The two main risks highlighted in the review are an externally-generated recession, and house price corrections in Toronto, Vancouver, and their surrounding areas.
Toronto’s main stock index was one of the strongest among global markets Thursday as investors focused on Trump, the ECB and the UK election.
Home Capital and Valeant were among Canada’s best performers with the former subject to takeover speculation and the latter picked up $930 million for its iNova division.
Healthcare led the gains for the TSX with IT and financials also posting strong gains. Materials was the weakest sector group as gold prices eased.
Wall Street closed flat having gained earlier as sacked FBI director gave his testimony to the Senate. European indexes were lower as the ECB held interest rates and the UK election took place.
The S&P/TSX Composite Index closed up 50.95 (0.33 per cent)
The Dow Jones closed up 8.84 (0.04 per cent)
Oil is trending higher (Brent $47.94, WTI $45.71 at 4.45pm)
Gold is trending lower (1281.70 at 4.45pm)
The loonie is valued at U$0.7405
Household debt, housing market has become riskier
The Bank of Canada has reported its Financial System Review and warned that household debt and the housing market have both increased in vulnerability over the last 6 months.
Governor Stephen Poloz said that “the financial system remains resilient, and macroeconomic conditions continue to improve.”
Household debt increases have been driven by mortgage lending especially in Toronto and Vancouver. While the bank says that credit quality has improved in the insured mortgage market, it also says the uninsured mortgage market is increasing with some mortgages showing “risky characteristics.”
For the housing market, Governor Poloz said that macroprudential and housing policy measures are expected to mitigate the risk from rising house prices.
The two main risks highlighted in the review are an externally-generated recession, and house price corrections in Toronto, Vancouver, and their surrounding areas.
