Equities surge as political uncertainty settles
Politics was one of the driving forces behind a positive start for the world’s equity markets Monday.
The Japanese prime minister’s ruling coalition secured control of the nation’s upper house; Malcolm Turnbull’s government retained control in Australia; and the UK will have a new prime minister this week as Home Secretary Theresa May became the uncontested candidate to replace David Cameron.
The political events of the day boosted equity markets in Asia, Europe and North America with the S&P 500 in New York reaching an all-time high.
The main TSX index closed up by triple digits as energy stocks and banks led the gains with all of the main sectors advancing.
Oil prices have been declining on concern over the increasing output from Canada and a higher US rig count.
The S&P/TSX Composite Index closed up 102.0 (0.72 per cent)
The Dow Jones closed up 78.96 (0.44 per cent)
Oil is trending lower (Brent $46.02, WTI $44.45 at 4.05pm)
Gold is trending lower (1355.30 at 4.05pm)
The loonie is valued at U$0.7623
Alberta government to boost energy development with rate cut
The Alberta government is aiming to boost investment in development in the energy sector by cutting its royalty rates for oil and natural gas companies.
There will be reduced rates for two new initiatives; the Enhanced Hydrocarbon Recovery Program and the Emerging Resources Program which will allow an extended period of royalty savings for early stage projects and allow firms to maximize output from existing projects.
The new programs will take effect from January 1 2017 along with the rest of the province’s royalties.
No fed funding required for Bombardier’s CSeries yet
Bombardier’s CSeries jet program has enough funding currently, the Quebec premier said Monday. However, Philippe Couillard still expects $1 billion of federal funding to match that of the provincial government.
Mr. Couillard said that the funding already provided by Quebec will enable Bombardier to fill all orders that have been made so far but the federal funds will be needed to provide the firm with future flexibility.