On Monday, with the U. S. markets closed, Toronto was about unchanged.
Ceapro recovered 4.6% while CRH Medical was down 3.7%.
AutoCanada recovered 4.6%.
The decision of the Green Party in B.C. to support the NDP and attempt to topple the Liberals seems like bad news for Alberta’s hopes of getting the new Pipeline built. In theory, the province has no jurisdiction but it seems to wield considerable influence in practice. I suppose it is fair that the NDP be given a chance to form government, since the rules allow for it.
A Globe and Mail article today points out that Canadian Western Bank has had to raise its deposit rates on GICs in the wake of the Home Capital situation. This lowers the profitability of CWB. However, the impact should be only very minor initially since it would only apply to very recent GICs and not to existing GICs deposited at lower rates. There was likely no impact in the quarter it will report this week. And, this whole Home Capital impact is likely to be temporary. CWB also faces higher loan losses and recently apparently pushed a land developer (Walton) into receivership. I don’t know how large a borrower Walton was but I do think that any impacts from loan losses will also be temporary. CWB has a profitable operation that makes money every day. Unusual loan losses could push it into losses (though I don’t expect that) but the underlying business would almost certainly remain profitable. Over many decades Canadian banks have been able to recover from occasional temporary issues because their businesses are basically profit engines such that they are able to recover from the occasional stumble. CWB reports earnings on Thursday.