Markets broadly higher ahead of the Fed, commodities slip
Equity markets gained Tuesday ahead of this week’s Fed meeting with an interest rate rise almost certain.
On the main TSX index only telecoms and materials lagged – and by small margins – while the other 8 sectors gained led by a 1.6 per cent rise for energy firms as oil continued its rise before settling around 15 cents higher.
Wall Street and Europe also closed higher while Asian markets were mostly up with China the notable exception despite better economic data.
Gold, silver and copper all declined.
The S&P/TSX Composite Index closed up 97.57 (0.64 per cent)
The Dow Jones closed up 114.8 (0.58 per cent)
Oil is trending flat (Brent $55.56, WTI $52.82 at 4.35pm)
Gold is trending lower (1160.40 at 4.35pm)
The loonie is valued at U$0.7620
Husky announces $100 million investment in Sunrise project
Calgary’s Husky Energy will be increasing its investment in 2017. It has announced an extra $100 million for its Sunrise oil sands project, taking its overall projected investment for 2017 to between $2.6 and $2.7 billion.
That means the firm is investing far more than its 2016 projected total of $2 billion.
New CEO Rob Peabody told analysts Tuesday that the firm’s “vitals have never been stronger” following a period of transformation for the business amid the decline in oil prices.
There was also some hope for the firm’s investors; with the higher oil prices, Husky may be able to restore dividends to shareholders which were put on hold last year.
Marijuana producer shares higher on recreation sale hopes
Share prices for Canada’s marijuana firms increased Tuesday following a report recommending that recreational pot should be sold in stores.
A task force headed by former Ottawa minister Anne McLellan said that personal possession should be legalized for over 18s, subject to a 30 gram possession limit.
The report also said that tax revenues from pot sales should fund education programs on the dangers of the drug.