Oil price surge helps TSX to 1 per cent gain
After dropping in the previous session the main index of the Toronto Stock Exchange gained more than 1 per cent Wednesday. Resources, energy and railways stocks all increased while there were some losses in the consumer goods sectors.
Oil prices surged during the Wednesday session with Brent up by more than 5 per cent and West Texas Intermediate gaining almost 7 per cent.
Wall Street also ended higher as the Fed decided not to increase interest rates but hinted that December’s meeting could be ‘the one’.
Asian markets closed generally lower earlier due to concern over China and oil prices pre-surge; European indexes were boosted by oil’s gains and by regional earnings. The markets had closed before the Fed’s announcement so reaction will come in the next session.
The S&P/TSX Composite Index closed up 163.6 (1.19 per cent)
The Dow Jones closed up 198.1 (1.13 per cent)
Oil is trending higher (Brent $49.19, WTI $46.18 at 5.05pm)
Gold is trending lower (1155.40 at 5.05pm)
The loonie is valued at U$0.7581
Canadian oil industry to lose $2.1 billion this year
A report by the Conference Board of Canada predicts that the country’s oil industry will lose $2.1 billion in pre-tax revenue for 2015. Revenues will be down 22 per cent this year compared to 2014 while investment will be down 39 per cent. The report also highlights the impact on the labour force with job opportunities in gas and oil down 7.4 per cent this year. The think tank expects revenues to rise in 2016 but that profit margins will be very narrow.
Bombardier to get help from Quebec, Learjet 85 mothballed
Bombardier is to mothball its Learjet 85 program and enter into a joint venture with Quebec for its CSeries according to a report. The Financial Post quotes unnamed sources for the story which claims that Bombardier will write down billions of dollars invested in the CSeries so far, while the province will take on half the risk for the aircraft which is due to go into service in 2016. The Quebec government has pledged its support for the firm on a number of occasions.
Securities whistle-blowers could receive $5 million
Those who blow the whistle on securities crimes could be in line for as much as $5 million after the Ontario Securities Commission
raised the upper limit. The original proposal was for a $1.5 million cap. In a statement OSC chair Howard Wetston commented: “The OSC recognizes that whistle-blowers are an incredibly valuable source of information. We are providing strong incentives for them to come forward.”