Daily Wrap-up: 6-week high for TSX as oil surges on Iran

Daily Wrap-up: 6-week high for TSX as oil surges on Iran

Daily Wrap-up: 6-week high for TSX as oil surges on Iran 6-week high for TSX as oil surges on Iran
Oil prices were boosted Wednesday as Iran showed support for the growing league of oil producing nations who are willing to freeze output. The Iranian oil minister met with counterparts from other nations and discussed how to stabilize the market. The talks had begun with Russia and Saudi Arabia.

As oil gained, energy stocks led the gains across Europe, Wall Street and Toronto. Asian markets had closed before oil’s surge.
 
The S&P/TSX Composite Index closed up 312.2 (2.49 per cent)
The Dow Jones closed up 257.4 (1.59 per cent)
Oil is trending higher (Brent $34.81, WTI $31.24 at 5pm)
Gold is trending higher (1209.60 at 5pm)
The loonie is valued at U$0.7293
 
Investors increase foreign holdings
Canadian investors acquired $17.4 billion of foreign securities in December, a second consecutive month of strong investment abroad, Statistics Canada reported Wednesday. Meanwhile, foreign investors reduced their holdings of Canadian securities by $1.4 billion, led by federal government debt securities.

In the fourth quarter, Canada's international transactions in securities posted a net outflow of funds from the economy of $16.5 billion while portfolio investment generated a net inflow of funds to the Canadian economy of $35.2 billion for 2015 as a whole, led by significant foreign investments in Canadian securities in the first half of the year.
 
“Turning point” for Bombardier
It was day of mixed news from Bombardier. The firm announced 7,000 jobs cuts across its global workforce and then followed the gloomy announcement with news of a huge order for its C Series jets. The order came from Air Canada which may buy as many as 75 of the aircraft for around $6.4 billion. The Financial Post reports that although there is no federal funding or political pressure behind the order, a Quebec government lawsuit over maintenance being moved to the US, will be dropped against Air Canada on agreement that the airline’s new C Series will be maintained in Quebec for at least 20 years. Bombardier CEO Alain Bellemare called the order “a turning point.”
 
Shopify shares gain on 99 per cent revenue surge
Canadian e-commerce firm Shopify has reported a massive jump in revenue to U$70.2 million, a 99 per cent increase year-over-year. The quarterly gain was 33 per cent. There was still a net loss, of $6.3 million, but the 1 cent per share loss was lower than the 6 cents per share that analysts had predicted. The firm’s shares gained almost 10 per cent.