B.C. seeks ban on public drug use, dialing back decriminalization
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
North American stock markets swung lower midweek after the Federal Reserve revised its inflation outlook upwards and moved forward the timing of planned interest rate hikes.
The U.S. central bank announced Wednesday that the first rate hikes would be in 2023, after signalling in March that there would be no increases until at least 2024.
A majority of bank members also said there could be at least two quarter-point increases in 2023.
Stock markets dropped after the statement was issued at 2 p.m., but the TSX bounced back before ending the day slightly below water.
The S&P/TSX composite index closed down less than a point to 20,230.96 after reaching an intraday record of 20,295.18.
The Toronto market reacted to the Fed statement but failed to be affected by an earlier Statistics Canada report that the consumer price index rose to 3.6 per cent in May, the largest yearly increase since May 2011.
In New York, the Dow Jones industrial average was down 265.66 points at 34,033.67. The S&P 500 index was down 22.89 points at 4,223.70 after posting an intraday record, while the Nasdaq composite was down 33.18 points at 14,039.68.
The U.S. Fed increased its outlook for inflation to 3.4 per cent this year, up from its prior forecast of 2.4 per cent. It expects GDP would grow seven per cent this year, up from 6.5 per cent. Unemployment would fall to 4.5 per cent in 2021, 3.8 per cent in 2022 and 3.5 per cent in 2023.
But it gave no signal about tapering its US$120 billion a month in bond purchases or that it viewed inflation as anything but temporary.
Pierre Cleroux, chief economist for the Business Development Bank of Canada, said the bank made no major changes to its outlook but markets reacted to it suggesting two rate hikes for the first time since the pandemic.
"They keep exactly the same strategy, but they are sending the signal that the U.S. economy is improving and as a result they are going to increase interest rates faster than expected," he said in an interview.
That's positive overall and a reason why Cleroux said he doesn't expect the market declines will be lasting.
"It's down now, but I think it's actually positive news and I think the next few days the market is going to be reassured by that."
The Fed statement offers a signal that the Bank of Canada will also increase rates because the economy is performing well.
However, Cleroux doesn't expect the Canadian central bank to accelerate its rate increases.
"They already announced that they will increase interest rates from summer 2022. They were actually a bit more aggressive than the Fed and that is the reason our dollar is higher, so I don't think that will change the Bank of Canada strategy."
The heavyweight financials sector climbed on news of two U.S. interest rate hikes and was the best performer on the TSX as Bank of Montreal, National Bank and Scotiabank shares rose 1.4, 1.3 and 0.9 per cent, respectively
Technology was also higher as shares of Shopify Inc. rose 3.6 per cent and offset a 7.4 per cent decline by BlackBerry Ltd.
Energy was the worst performer despite higher prices, losing 1.4 per cent as Cenovus Energy Inc. fell 2.3 per cent, MEG Energy Corp. was down two per cent and Canadian Natural Resources Ltd. was off 1.7 per cent.
The July crude oil contract was up three cents at US$72.15 per barrel and the July natural gas contract was up 1.1 cents at US$3.25 per mmBTU.
Prices continued to increase as demand moves up as U.S. restrictions are lifted while supply remains restricted.
The Canadian dollar traded for 82.03 cents US compared with 82.05 cents US on Tuesday.
Materials also dropped despite higher metals prices as Kinross Gold Corp. climbed 7.1 per cent.
The August gold contract was up US$5 at US$1,861.40 an ounce and the July copper contract was up 5.2 cents at nearly US$4.39 a pound.
This report by The Canadian Press was first published June 16, 2021.
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Donald Trump's defence team attacked the credibility Friday of the prosecution's first witness in his hush money case, seeking to discredit testimony detailing a scheme between Trump and a tabloid to bury negative stories to protect the Republican's 2016 presidential campaign.
An American Airlines flight attendant was indicted Thursday after authorities said he tried to secretly record video of a 14-year-old girl using an airplane bathroom last September.
Devastating tornadoes tore across parts of eastern Nebraska and northeast Texas Friday as a multi-day severe thunderstorm event ramped up in the central United States.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.