TSX catches up -- The Toronto Stock Exchange was seeing robust gains by midday today, August 3, 2010, catching up to increases in other world markets a day earlier when Canadian markets were closed for a civic holiday. The S&P/TSX composite index was up about 160 points, or 1.4% to 11,870. Gains were broadly based across most sectors.
The Canadian Dollar was trading at 97.68 cents US, up 43 basis points from Friday’s close.
Most world stock indicators saw healthy gains on Monday. However, US markets were slightly down because of reports on personal income and spending, and pending home sales did not show any improvements. European markets were mixed Tuesday with declines in the UK and France but gains in Germany. Asian stocks were mostly higher.
US consumer spending and personal income remain flat -- US consumers did not boost their spending in June and their incomes failed to increase, further evidence that the economic recovery slowed in the spring. And Americans saved at the highest rate in nearly a year.
Personal spending was unchanged in June, the Commerce Department reported Tuesday. It was the third straight month of stagnant customer demand. Incomes were also flat, the weakest showing in nine months.
Forecast: no double dip recession -- There’ll be no double-dip recession for the world economy this year, despite the dampening effect of European countries struggling with deficits, the Conference Board of Canada said Tuesday.
In its summer global economic outlook, the Ottawa-based think-tank said the world economy should expand by 3.5% this year.
The eurozone is anticipated to see relatively light economic growth of 1.1%. The Conference Board said this region might slip back into recession later this year. It noted that recent economic activity there has been largely dependent on government stimulus, and that’s expected to dry up as foreign investors demand smaller government deficits.
The Asia Pacific region is forecast to see economic growth of 5.9% this year, which would be 8.3% if excluding the “troubled Japanese economy.”
Latin America is expected to see economic growth of 4.5% for 2010 with all major economies there expanding, except Venezuela.
The Conference Board projects North America’s economic growth this year at 3%, noting that the chance of U.S. seeing a double-dip recession are “minimal.”
Source: www.financialpost.ca, www.advisor.ca