Resources rebound for higher TSX
The Toronto Stock Exchange’s main index advanced Tuesday as resources stocks rebounded from lower prices in the previous session. Oil prices reversed their downward trajectory as signs of growing demand were balanced against the supply glut. Wall Street also gained initially despite higher bond yields. Greece was the main concern in Europe with the likelihood still high for a default on its loan repayment due Friday. European markets closed lower. Asian markets were also lower although Shanghai ended in positive territory.
The S&P/TSX Composite Index closed up 30.61 (0.20 per cent)
The NYSE closed lower
Oil is trending higher (Brent $65.63, WTI $61.34 at 4.25pm)
Gold is trending higher
The loonie is valued at U$0.8057 (at 4.25pm)
Microsoft to invest in new Canadian data centres
As cloud computing grows Microsoft has recognized the need for local data centres due to the demands of its clients. To that end it announced Tuesday that it is building two new Canadian facilities, in Quebec and Toronto. CBC reports that according to tech consultancy IDC Canadian firms will spend $2.5 billion on cloud computing this year and Toronto mayor John Tory says that 14,000 jobs in the city are connected to the burgeoning sector.
Air Canada forecasts improving financials
Key financial metrics have been revised upwards by Air Canada having made significant progress since issuing targets in 2013. The airline said Tuesday that invested capital should see between 13 and 16 per cent growth by 2018 with EBIDTAR increasing by 15 to 18 per cent. The company will make cost savings and has opted out of the federal pension plan arrangement, which it expects to free up more than $1 billion.
Locked into a three-year wireless contract? Rules change tomorrow
New rules introduced by the CRTC for new wireless contracts are expanded to all contracts Wednesday. The rules mean that customers locked into three-year contracts can break them after two years without the large penalty that has been the case previously. Those who took out a contact before June 2013 will now be able to break free in search of a better deal. Those in contracts shorter than two years will still have to pay a penalty but CRTC rules mean those charges are limited and should be fair.
Demand for autos means shorter shut-down
The traditional shut down of auto manufacturing plants will be shorter this year as demand is soaring. For the third year in a row Ford’s plant in Oakville, Ontario will close for just one week instead of two and Chrysler has scrapped the summer shutdown at its US and Mexican plants.