Canadian Shares Rise on Stronger-than-Expected Q4 GDP Growth and Higher Copper Prices

Strategic Insights -

The Canadian economy expanded at a 5% annualized rate in Q4, faster than predicted by the Bank of Canada. GDP grew at the fastest pace since Q3 of 2000, while copper prices jumped about 6% after an earthquake in Chile shut up to a fifth of that country's output. The S&P/TSX index was last up 0.84% at 11,727.51, as investors react positively to the stronger-than-expected economic growth.

Key Takeaways:

  • Canadian economy expanded at a 5% annualized rate in Q4, faster than predicted by the Bank of Canada.
  • GDP grew at the fastest pace since Q3 of 2000, according to Statistics Canada.
  • Copper prices jumped about 6% after an earthquake in Chile shut up to a fifth of that country's output.
  • The massive earthquake in Chile had a significant impact on copper prices, leading to a surge of 6%.
  • The S&P/TSX index was last up 0.84% at 11,727.51.
  • Economists surveyed by Bloomberg News predicted a 4.2% expansion in Q4, versus the actual 5% growth.
  • The Bank of Canada had projected a 3.3% gain in Q4, but the actual growth exceeded this prediction.

Statistics:

  • GDP growth in Q4: 5% annualized rate.
  • Fastest GDP growth since Q3 of 2000.
  • Copper prices: jumped 6% after the earthquake in Chile.
  • S&P/TSX index: up 0.84% at 11,727.51.
  • Median estimate of 23 economists surveyed by Bloomberg News: 4.2% expansion.
  • Bank of Canada projection: 3.3% gain.
  • Statistics Canada reported actual GDP growth.

Sources:

  • Midwest Trader via COMTEX, Boston, Mar 01, 2010
  • Bloomberg News
  • Statistics Canada
  • Comtex SmarTrend Alert, an automated pattern recognition system
  • Comtex News Network, Inc.