Global growth puts pressure on TSX
Concern over global growth following a report by the OECD led to widespread decline in world stock markets Monday.
The report which forecast a slower pace of growth for 2015 and 2016 added to greater concern over the oil glut and higher anticipation of a US interest rate rise in just a few weeks.
Toronto and New York were both lower along with Europe and most of the Asian markets. Only Shanghai and Tokyo managed to close with gains, even after China’s export data for October was weak.
The S&P/TSX Composite Index closed down 70.68 (0.52 per cent)
The Dow Jones closed down 179.9 (1.00 per cent)
Oil is trending lower (Brent $47.27, WTI $43.99 at 4.30pm)
Gold is trending lower (1091.10 at 4.30pm)
The loonie is valued at U$0.7531
CP could be about to bid for US firm
Canadian Pacific is widely rumoured to be considering options for US railway Norfolk Southern. Bloomberg reported that the two firms could be talking about a tie-up, either a merger or acquisition. The combination would create a company with a market value in excess of $50 billion and would add 32,000 km across 22 states to CP’s operations. Shares in both companies were higher Monday.
Steel producer files for bankruptcy protection
Essar Steel Algoma Inc. has filed for bankruptcy protection. Canada’s second largest steel producer says it has been hard hit by the drop in steel prices and will look to restructure its debts.
30 per cent of Canadian adults could be legal pot customers
Legalized marijuana could have as many as 8 million customers according to a poll from Forum Research. That amounts to 30 per cent of Canadian adults and gives further credibility to estimates that the market could be worth $5 billion a year and deliver $1 billion in revenue to provincial and federal governments.