Bay Street investors seemed to like the Bank of Canada’s governor’s comments that he’s okay with the inflation rate.
Stephen Poloz reportedly said yesterday that inflation will stay above two per cent for the rest of the year, but that he’s comfortable with that. Financials gained today on the back of those comments. The energy sector was up as well, despite early losses from lower oil prices. The TSX closed at 15,552, up 67 points.
On Wall Street there weren’t any big swings as commodities fell and U.S. yields were up. That could change as the week goes on though as earnings season rolls on. More than 180 companies are expected to report first quarter results, and analysts are predicting the strong season to continue. Thomson Reuters numbers show that just over 79 per cent of the 87 companies that have already reported have exceeded profit projections. The Dow Jones was down 14 points, closing at 24,448.
It looks like Toys ‘R’ Us Canada will live on. Fairfax Financial has bought it for a reported $300 million. There were no other bidders in the mix. The deal is still waiting for court approval.
At press time oil is up 55 cents, to $68.95 U.S. per barrel, gold is down $12.50 to $1,325.80 an ounce, and the loonie is down on Poloz’s comments about inflation, just over half a cent, to 77.87 cents U.S.