Daily Wrap-up: Banks help TSX gain following rate cut

Daily Wrap-up: Banks help TSX gain following rate cut

Daily Wrap-up: Banks help TSX gain following rate cut Banks help TSX gain following rate cut
The heavily-weighted financial sector helped the Toronto Stock Exchange gain Thursday after the Bank of Canada’s interest rate cut. Banks also played a big part in Wall Street’s fortunes as Citigroup reported strong earnings but Goldman Sachs posted weaker profits on litigation costs. Asian markets closed with gains, despite concern over China’s volatile equities market, as the Greek debt deal boosted sentiment. Greece was also in focus for Europe with the ECB agreeing a bridging loan until a full bailout agreement has been signed. The major European indexes closed higher.

The S&P/TSX Composite Index closed up 68.80 (0.47 per cent)
The NYSE closed higher (Dow up 70.08 / 0.39 per cent)
Oil is trending mixed (Brent up $57.50, WTI down $50.96 at 4.10pm)
Gold is trending lower
The loonie is valued at U$0.7715 (4.10pm)
 
Auto parts maker Magna to buy German firm
Canadian auto-parts maker Magna has agreed to acquire German firm Getrag for $1.9 billion. Magna is focusing on transmission systems, an area where Getrag is a market leader. The firm is also attractive due to its connections in the Chinese market.
 
Banks cut prime rates but resist full percentage
The Big Five Canadian banks have all dropped their prime lending rates following the BoC interest rate cut but have held back from the full 25 basis points. TD was the first to act, cutting its rate by 0.10 per cent Wednesday and then announcing a further cut when rivals opted for 0.15 per cent decreases. The cuts have come into effect already, with the exception of TD’s additional 5 basis points which are effective Friday.
 
Sleep Country Canada goes public again
After 7 years as a privately held company Sleep Country Canada has listed again on the TSX with a $300 million IPO. The mattress retailer, which has 215 Canadian stores, issued 17.6 million shares and may offer more at a later date.
 
Bombardier appoints new CFO
Bombardier has appointed John di Bert as its new chief financial officer; joining from Pratt & Whitney and replacing the retiring Pierre Alary. Di Bert has previously worked at KPMG and Rolls-Royce and takes up his new role on August 10.