(Toronto) The main Canadian stock index ended slightly on Friday, helped by the vigor of the real estate sector, during a day marked by a low volume of transactions, while the American markets were closed for July 4.
The S&P/TSX compound index increased from 1.90 points to 27,036.16 points.
Brent Joyce, chief strategist for investments and director general of BMO Advice in private investments, said in an interview that the actions of the real estate sector have been “stimulated by interest rates”, adding that it seems likely that the American federal reserve reduces its interest rates in July.
The real estate sector will certainly be influenced by short -term interest rates. In Canada, real estate encompasses many sectors, such as logistics, storage and the industrial sector.
Mr. Joyce added that crossing the 27,000 point mark by the TSX is “important from a psychological point of view”.
Eleven from the past 13 weeks have recorded increases. “Going over this threshold is a psychological barrier that could now propel things above,” he said.
Mr. Joyce said he expected new TSX increases, exceeding the 28,000 points mark towards the end of the year. TSX growth, he added, could be fueled both by valuation and profits.
On the other hand, he said he believed that the US markets will probably need to grow profits to justify higher value levels.
Mr. Joyce underlined an increased degree of certainty on the markets following the adoption by the House of Representatives of the United States of a vast program of tax and expenditure reductions.
He added that the next step for the markets is the emergence of trade agreements, as the July 9 deadline approached fixed by President Donald Trump for the taxation of customs duties.
Regarding trade relations between the United States and Canada, Mr. Joyce said that Canada had gone from the status of “number one public enemy” a few months ago that of “let’s just be friends”.
He added that uncertainty surrounding the customs tariffs could darken the next results of results in the United States for the third quarter.
The Canadian dollar was negotiated on Friday during the average of 73.50 cents US, down compared to that of 73.66 US US on Thursday.
The price of crude oil lost 50 cents US at US $ 66.50 per barrel.
The Gold Course won US $ 3.60 at US $ 3,346.50 per ounce.
The prices of raw materials are only given indicative, because there is no closing price on public holidays in the United States.
