Energy weighs on TSX as oil glut fears increase... Mortgage rules impact CMHC volumes... Producer prices, raw materials rise...
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Energy weighs on TSX as oil glut fears increase
The energy sector of the main TSX index was impacted by falling oil prices as additional output from Libya intensified concerns about the global supply glut.
Seven groups fell Tuesday including the highly influential financials sector; telecoms, consumer discretionary and industrials were the three groups that bucked the trend but the overall index closed lower.
Wall Street also closed lower along with European and most Asian indexes.
The S&P/TSX Composite Index closed down 49.56 (0.32 per cent)
The Dow Jones closed down 50.81 (0.24 per cent)
Oil is trending higher (Brent $51.72, WTI $49.51 at 4.40pm)
Gold is trending lower (1265.70 at 4.40pm)
The loonie is valued at U$0.7428
Mortgage rules impact CMHC volumes
The volume of mortgages insured by CMHC fell in the first quarter of 2017 following tougher lending conditions implemented last year.
In its quarterly outlook, the agency said that it insured more than 48,000 new mortgages in the quarter, with the total insurance in-force $502 billion, well below the $600 billion legislated limit.
The volume was down 41 per cent from the previous quarter and the value of loans was $6 billion lower at $8.3 billion.
The agency revealed a further improvement in the quality of the loans it insures, with an average credit score of 751, average equity of 35.2 per cent and arrears at 0.32 per cent.
Producer prices, raw materials rise
The Industrial Producer Price Index was up 0.6 per cent largely due to higher prices for energy products in April, Statistics Canada reported Tuesday. It was the 8th consecutive monthly gain but was slightly down from the 0.8 per cent rise in March.
The Raw Materials Index was also higher, by 1.6 per cent, as crude energy product prices gained. This was a rebound for the index which was 1.7 per cent lower in March.