TSX turns positive at the end of a volatile week New York

TSX turns positive at the end of a volatile week; New York markets post solid gains TORONTO – The Toronto stock exchange turned positive Friday, capping a wild week sparked by the surprise devaluation of the Chinese yuan and its impact on commodities and other currencies.The S&P/TSX composite index closed up 39.48 points to 14,277.88 after three days volatility that saw Canada’s main index shed a net 227 points.The yuan was stable on Friday after the sharp drop earlier in the week as traders took comfort from remarks the previous day by Zhang Xiaohu, a deputy governor at People’s Bank of China, who said there was “no basis for persistent and substantial devaluation.”Michael Greenberg, portfolio manager at Franklin Templeton Solutions Group, said it was possible that there could be “a bit more devaluation in the yuan and that could maybe continue with a bit of volatility in the market.”“But our current view is that, medium to long term (a more free-floating yuan) is probably a good thing for Asia,” he said, noting it could promote improved trade and growth for many of the region’s economies, which would translate into rising demand for many of the commodities upon which Canada’s economy depends.New York markers also advanced, with the Dow Jones industrial average up a solid 69.15 points to 17,477.40, while the Nasdaq added 14.68 points to 5,048.24 and the S&P 500 rose 8.15 points to 2,091.54.On commodity markets, the September oil contract rose 27 cents to US$42.50 a barrel after hitting its lowest level in more than six years, while September natural gas advanced over a penny to US$2.80 per thousand cubic feet. December gold was lower for a second day, down $2.90 at US$1,112.70 an ounce.The Canadian dollar was also weaker, edging down 0.17 of a U.S. cent to 76.38 cents US.In economic news, Statistics Canada reported manufacturing sales increased 1.2 per cent in June, well below the market consensus that called for a 2.7 per cent gain.“The positive number, that was good, but a bit of a disappointment given that Canadian dollar has depreciated as much as it has,” Greenberg said, adding that it might take a few more months before the beneficial effects of a lower loonie begin to “seep through.”However, Greenberg also noted that the Canadian economy isn’t as balanced as it once was and that after many years of living with a strong loonie, “a lot of that manufacturing that would now be benefiting from that weaker Canadian dollar has already closed their doors and moved shop.”“So even if that part of the economy (manufacturing) is benefiting or will soon benefit from that weaker Canadian dollar, it’s just not as big a driver as it used to be for the economy, so that is a bit of a worry.” by Brian McKenna, The Canadian Press Posted Aug 14, 2015 7:01 am MDT Last Updated Aug 14, 2015 at 4:20 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email read more