Gold remains positive despite Fed expectation
Commodities were subdued Monday as US crude prices closed out the session lower while gold losses eased despite expectation of a Fed interest rate rise.
Meanwhile, it was a mostly positive day for equities although markets are clearly awaiting the Fed while weighing growing geopolitical issues in various parts of the world.
The main TSX index closed with a small gain as materials and energy led 6 sectors higher. Telecoms and healthcare were among the four that lagged.
Wall Street reached the closing bell with gains too while most European and Asian indexes also gained with Germany and Australia the notable exceptions.
The S&P/TSX Composite Index closed up 38.14 (0.25 per cent)
The Dow Jones closed down 21.50 (0.10 per cent)
Oil is trending flat (Brent $51.42, WTI $48.47 at 4.45pm)
Gold is trending higher (1203.60 at 4.45pm)
The loonie is valued at U$0.7436
Ackman has bailed on Valeant
William Ackman’s hedge fund has sold its entire investment in Valeant Pharmaceuticals.
Reuters reports that his Pershing Square fund, which has supported the health care company through its highs and lows of recent years, has sold its stock with a large tax loss.
Ackman said in a statement that the divestment would enable the fund to “dedicate more time to our other portfolio companies and new investment opportunities.”
Natural gas producers get $25 billion support from TransCanada deal
TransCanada has announced a deal to utilize capacity in its pipeline between Western Canada and Southern Ontario.
The shipment agreement will see natural gas producers increase their supplies via the pipeline by 1.5 billion cubic feet per day for the next 10 years. The deal saves a major market for the producers and avoids the natural gas benchmark AECO falling.
Cameron Gingrich from Solomon and Associates told the Financial Post that the loss for the industry in lower revenues and output would have been around $25 billion.