Canadian stocks lower after NDP win Alberta election
Energy stocks led the decline in the Toronto Stock Exchange’s main index in Wednesday’s session as markets reacted to an unprecedented election win for the New Democratic Party in Alberta. The Progressive Conservatives have held power in the province for more than four decades leading to concern over the NDP’s lack of experience in control. Elsewhere US stocks also dropped again as investors awaited Friday’s jobs data and bond yields tempted funds away from equities. Asian markets closed lower on regional sell-offs; Tokyo was closed for a public holiday. A rally for the Euro helped European markets close higher; London was up but the market is cautious ahead of Thursday’s election.
The S&P/TSX Composite Index closed 150.1 (0.99 per cent)
The NYSE closed lower
Oil is trending higher (Brent $67.55, WTI $60.66 at 4.30pm)
Gold is trending lower
The loonie is valued at U$0.8304 (at 4.30pm)
Alberta election result sends shock waves through oil industry
Alberta’s oil industry has reacted to the NDP’s election win with fear with the prospect of higher corporate taxes looming along with potentially higher oil revenues and a pipeline curb. With the sector already suffering from the downturn in oil prices many are viewing the new government as a devastating blow to the industry.
Loblaw announces large jump in Q1 profits
Loblaw has posted an increase in net income of 21.7 per cent (to $146m) for the first quarter of 2015 compared to the same time last year. Adjusted net income was up 96.7 per cent to $301 million. Revenue was up 37.8 per cent to $10.05 billion. Loblaw’s quarterly dividend will be 2 cents higher at 25 cents.
Canadian Tire buys 12 Target leases
Twelve of the leases being sold by Target Canada have been bought by Canadian Tire for $17.7 million. The firm says the locations are spread across the country and will add 40,000 square feet to its retail space.