Oil slumps more than 6.5 per cent, TSX closed lower
Weak Chinese factory data and lower optimism of talks between oil producing nations hit oil prices and equities Monday.
US crude fell more than 6.5 per cent while Brent dropped almost 5.5 per cent having seen gains over the last few sessions.
The main index of the Toronto Stock Exchange was dragged lower by energy stocks with financials and industrials applying downward pressure.
Asian markets closed mixed on the Chinese data but closed before oil tumbled. European indexes closed lower as oil, China and weak Eurozone manufacturing data weighed.
Wall Street also closed lower although the Nasdaq closed with gains as Facebook reported strong results and Google-parent Alphabet’s after-close results were anticipated.
The S&P/TSX Composite Index closed down 147.8 (1.15 per cent)
The Dow Jones closed down 17.12 (0.10 per cent)
Oil is trending lower (Brent $34.05, WTI $31.37 at 4.30pm)
Gold is trending higher (1129.60 at 4.30pm)
The loonie is valued at U$0.7185
Online gaming boss weighs $2.8 billion takeover
The chair and CEO of Montreal gaming firm Amaya is considering a takeover of the company. David Baazov has not made a formal offer but is talking about $21 per share, valuing the firm at $2.8 billion on Friday’s closing price. That would represent a 40 per cent premium although the news has pushed shares up around 30 per cent Monday. No further details have been released so far.
Alberta to seek $5 billion in investments
The Alberta provincial government says it will seek $5 billion of investment in order to boost the economy and create jobs amid the downturn in the oil industry. The NDP government said Monday that it is keen to attract petrochemical companies to the province in return for $500 million in royalty credits. The Petrochemicals Diversification Program aims to create around 4,000 jobs.
Canadian manufacturing weak says RBC
It’s not only China and the Eurozone that is showing slow growth for the manufacturing sector; Canada is also weak in this area according to a report by RBC. The bank says that January’s PMI was 49.3, stronger than December’s 47.5 but still in contraction. The figures predict that the manufacturing sector will be weak for the months ahead.