Oil drops below $40 but TSX closes higher
Oil prices dropped further Wednesday with West Texas crude falling below $40 for the first time since August before recovering later. That, together with a concern over terror attacks, the global economy and Fed minutes suggesting a US interest rate rise next month, could have impacted the TSX. However it managed to close higher.
Wall Street also closed higher with the main indexes up around 1.5 per cent. Europe’s markets closed mixed along with those in Asia.
The S&P/TSX Composite Index closed up 119.6 (0.90 per cent)
The Dow Jones closed up 247.7 (1.42 per cent)
Oil is trending higher (Brent $44.17, WTI $40.68 at 4.10pm)
Gold is trending higher (1069.20 at 4.10pm)
The loonie is valued at U$0.7505
Canadian Pacific confirms $28 billion Norfolk Southern deal
Canadian Pacific is to acquire US railway Norfolk Southern in a deal worth $28 billion. The transaction will be half cash, half stock with Norfolk shareholders receiving around U$46.72 plus a share in a new holding company. They will hold 41 per cent of the new company which will have a dual listing in New York and Toronto.
Commodity price drops mean job losses at Teck
Teck Resources is shedding 1,000 jobs across its international operations in a bid to cut costs. With commodity prices declining the Vancouver-based firm is under increasing pressure to improve its financial performance. It will cut its semi-annual dividend rate to 5 cents per share in December. A year ago the rate was 45 cents per share.
TransCanada begins layoffs
TransCanada has started the process of laying off staff with notices sent to staff Wednesday. The company announced last week that there would be redundancies following an immediate review in the wake of President Obama’s rejection of the Keystone XL pipeline. TransCanada has not said how many roles are affected by the layoffs.
Credit card debt highest since 2013
Analysis of Canadian’s credit card debt shows the highest level since 2013 as holiday shopping season approaches. Monitoring agency TransUnion says that credit card debt grew more than 3 per cent in the 12 months to the end of the third quarter of 2015. The average outstanding balance is $3,745. Auto loans were up 2.87 per cent to $19,649 on average.