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Can Canada stock exchange prove to be one of the debt solutions?

Canada’s largest stock exchange, the Toronto Stock Exchange (TSX) has done a lot better in the starting of 2011. Due to the easing out of the sovereign debt in Europe, the stock exchange in Canada somewhat closed positive after six sessions. It has gained around 1.18% on January 11th, 2011. The stock exchange hadn’t been doing that good in the first week of January but at the starting of the second week, the stock exchange outshone many others. Since the stock market has improved a bit now, you can go for stock trading and use it as one of your debt solutions.

Chronological events in the stock market in Canada

There have been many ups and downs in the stock exchange in Canada. In 200, the stock market had been low and high at the same time. The fluctuations are discussed below :

Stock exchange market as in the 1st week of January, 2011

The Toronto Stock Exchange (TSX) fell for the second day in a row as the positive effect in the economy out of USA weighed heavily on gold. The S&P/TSX composite fell by 6.32 points or 0.05%. The result came on to 13,395.99. The price of the crude oil was US$ 90 which was more than what it was a day before. The price of gold came down to US$ 1,373.70 an ounce. The unemployment rate has decreased which has put a lot of pressure on the commodities in Canada and other places. This was reported on 6th of January.

The investment in gold and silver has proved to be quite risky for investors in Canada. The Canadian dollar appreciated by 21 basis points which came up to US 100.36 cents. This was the fourth consecutive session and Canadian dollar came at par with or above its US counterpart. On Wednesday, 5th of January, the estimates of the economic conditions of the quarter 4, 2010 were released. The price of the industrial products rose by 0.5% in November beating the predicted estimates of 0.3%. The results were weak but positive. It had the same thing to say for the price of the raw materials. The price of the raw materials rose by 3.5% which was forecasted to be 2%. The results were shown to be positive even in USA and the predicted results were quite lower than what was the actual result. There were a lot of companies who had made a go on the S&P/TSX and have also gained a lot. There are companies who have gained around 8%.

Stock exchange market as in the 2nd week of January, 2011

The S&P/TSX gained 155.93 points and closed at 13,401.05. This was on Tuesday, 11th January, 2011. The reports further strengthened the economic conditions by saying that nine of its ten sub-indices were advancing with energy and materials leading. In US, the cost of the crude oil a barrel rose to US$ 91.11 and the gold prices also rose to US$ 1,384.30 an ounce. This showed the strengthening of the economic conditions both in USA and Canada. All these have made the Canadian dollar to appreciate by 36 basis points and close to 101.04 US cents.

Japan also announced on Tuesday (11th) that it would buy the European bonds as Portugal, Italy and Spain are selling off their debt. As new bond are quite scarce, the idea of buying European debt is the best news ever. You, as an investor, can invest in stocks as the market is really good and you may also get better returns when you sell them off.

The energy producers and the producers of precious metals had gained the most as they led the Canadian market. Suncor Energy gained by 1.57% which came up to $37.43. Due to the rise in the oil prices the Canadian Natural Resources have also gained by 2.16% or $42.50. The share prices of the Bank of Canada also rose to $52.56 which was 1.68% increase.

Stock exchange market as in the 3rd week of January, 2011

Due to the highest earnings by JP Morgan, the Toronto stock exchange came back into position to its highest at the closing. The Toronto Stock Exchange’s S&P/TSX composite index GSPTSE was profited by $62.58 or rose by 0.47%. It ended at 13,464.06. The reports further showed that 8 of the ten index’s major groups were higher.

The index reached and crossed the highest point of 13,500 two times in the last month which is the highest in the last two years. As per the reports, this point is proving to be a resistance and a catalyst can help the index to push below the resistance level. But still the Canada market won’t show real results in weeks. The new results in the stock market in Canada and USA have made the investors think and if you want to invest in the stocks, you can do it now. It can also help you come out of your debt problems.

All the major banks in Canada have also gone up and have led many advancers. The Toronto Dominion Bank went up by 2.82% which came to $76.17. While the Royal Bank of Canada in Toronto went up by 1.78% to $53.89. The energy shares also were winners as they gained a lot. Imperial Oil rose by 2.18% to $42.65 and EnCana rose to $31.21 which was 2.77% rise. Apart from the oil prices, the gas prices also gained 0.6% in the 3rd week of January.

The metals lost bit of their places in China which hit some of the commodity based currencies such as the Canadian dollar. But still the growth in Canada is not negative and proves that it’ll still be positive in the coming months. If China keeps on growing without any restraint and then falls abruptly, it may cause problems for Canada.

The position of the Canadian dollar is good ands it’s at par with its USA counterpart. If the market position rises gradually the way it has, the investors are going to trade in the Toronto stock market more. This will also help the job sectors to grow more and reduce debts all over.

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