Oil plunges on Fed, markets close higher
Oil prices took a dive Wednesday as data showed higher inventory of US Crude and the Fed increased interest rates.
As expected there was a 25 basis point rise in the Fed’s overnight interest rate target of between 0.25 and 0.50 per cent.
West Texas Crude ended the session down more than 4.5 per cent with benchmark Brent Crude down around 3.5 per cent.
Despite the lower oil prices, the major markets closed higher. Asia and Europe both closed before the Fed’s decision was announced but Wall Street and Toronto were unshaken by the news as the rate rise was mostly priced-in and a removal of the uncertainty is welcome.
The S&P/TSX Composite Index closed up 246.4 (1.91 per cent)
The Dow Jones closed up 224.2 (1.28 per cent)
Oil is trending lower (Brent $37.18, WTI $35.70 at 4.30pm)
Gold is trending higher (1072.80 at 4.30pm)
The loonie is valued at U$0.7241
Canadians will delay retirement to help the kids
A survey by BMO Wealth Management has revealed that Canadians will forego an earlier retirement in order to help their children. Half of those with children aged 18 to 24 said they would delay retirement, 22 per cent would take on extra debt to help their children and a third would be willing to have lower savings for their retirement if they could prevent their children struggling in the current economy.
Foreign investment in Canada surged in October
Foreign investors acquired $22.1 billion of Canadian securities in October, marking the highest such investment in six months. In September the figure was $3.3 billion. At the same time, Canadian investors added $3.2 billion of foreign securities to their holdings, led by non-US foreign bonds. As a result, Statistics Canada reports, Canada's international transactions in securities generated a net inflow of funds into the economy of $18.9 billion in October. This was led by strong foreign acquisitions of Canadian debt securities.
Schulich would consider enhanced Suncor offer
Canadian billionaire Seymour Schulich says that he would consider an offer for Canadian Oil Sands if hostile bidder Suncor sweetened the deal. The Financial Post reports that Schulich, who called the original $4.5 billion offer “ridiculous” would be interested in a deal which included the option to buy more Suncor shares if oil prices increase. He said that a group of other major investors would also welcome that deal. Suncor’s offer expires on Jan 8.