Oil surges more than 9 per cent as greenback falls
Mixed US data was in focus Wednesday with oil inventories higher than expected and services industries growing more slowly last month. The US dollar was under pressure, lowering the cost of many commodities priced in the currency and helping oil to gain.
The boost of more than 9 per cent for US crude helped energy stocks both sides of the border. The main index of the Toronto Stock Exchange was lifted by energy stocks but financials were lower.
Wall Street closed mixed with the Dow and S&P500 higher and the Nasdaq lower.
Asian and European indexes all closed lower.
The S&P/TSX Composite Index closed up 150.8 (1.21 per cent)
The Dow Jones closed up 183.1 (1.13 per cent)
Oil is trending higher (Brent $35.40, WTI $32.69 at 4.50pm)
Gold is trending higher (1143.50 at 4.50pm)
The loonie is valued at U$0.7256
Lowe’s to acquire Rona for $3.2 billion
Lowe’s is to acquire Quebec-based Rona in a $3.2 billion deal which will enable both firms to better compete against Home Depot. The friendly deal comes four years after Lowe’s bid for the Canadian firm was rejected and both firms are now in stronger positions in 2016. The deal has been approved by both firms’ boards but will require approval from Investment Canada and the Competition Bureau.
TransCanada’s jobs-for-approval deal
Energy East would create 120 jobs in Montreal and 90 additional roles outside the city; but only if the pipeline is approved by regulators. TransCanada’s controversial pipeline project, which is opposed by many officials on environmental grounds would involve 1600km of new pipeline and the newly announced deal with ABB Canada would see 22 electrical stations built around the Montreal area.
Bombardier set for reverse stock split
Bombardier’s shares dropped below $1 last week and is down by a third in the year so far; now it seems the firm is considering a reverse stock split. The Globe and Mail says that sources close to the firm say that the move would allow Bombardier to avoid being ejected from the S&P/TSX Composite Index. The firm has not commented on the reports and no details have been given as to how many old shares would equal each new one.