Current Trends in the Toronto Stock Market
On the positive side, the Toronto Stock Market was relieved by the fact that the quarterly results announced by Research in Motion (RIM), which produces BlackBerry and PlayBook tablet, showed that the company’s performance surpassed the expectations of the analysts. RIM said that their quarterly loss was US $ 235 million or 45 cents for each diluted share. The adjusted loss was 142 million which comes to 27 cents per share, which is much less than a per share loss of 47 cents predicted by the analysts. The company had posted a profit of $ 329 million (63 cents per share) last year.
Another Ontario Company Waterloo also announced their second quarter results which appeared better than anticipated. Due to these results, it is expected that there would be some positive movement in the market when it opens. Being end of a quarter, some volatile trading is also expected in the market.
The austerity measures being adopted in Spain has caused great concern among the investors, which may offset these gains. The Spanish government has announced substantial spending reduction to convince the investors and creditors that it is serious in its plan. Investors are still cautious and waiting for the credit rating by Moody. Some even expect that the Spanish Government may even be downgraded to junk status by this agency.
Nevertheless, the announcement by Spain to cut spending by Euro 40 billion in 2013 has given some hope to investors. They think that this would pave way for financial help from European Central Bank and other European countries.
As far as Canadian economy is concerned, according to Statistics Canada the growth was 0.2% in July which was better than 0.1% predicted by analysts. There was a slight fall of 0.09 of a cent to 101.86 cents by Canadian Dollar against us Dollar. There was a slight downward movement of Crude Oil in New York Mercantile Exchange by $1.07 to the current price of US $ 3.76. In Wall street the opening was slightly lower. The slight downward trend by 0.4% to 1.6 % was visible in DAX in Germany , IBEX in Madrid, CAC-40 in France and FTSE 100 index in Britain. In Asia a slight gain of 0.4% was seen in Hang Seng index of Hong Kong and Kospi of South Korea. Shangai Composit index also rose by 1.5%. Japan’s Nikkei however fell by 0.9%.