Recession over, TSX up 2 per cent
World markets staged a come-back Wednesday with a positive flourish for the final day of a dismal quarter. Toronto closed up more than 2 per cent following GDP data.
The trading day started with Asian markets recovering from a sell-off in the previous session, taking a lead from a narrow gain for Wall Street Tuesday. European equities closed broadly higher with gains in London and Germany among those surging more than 2 per cent.
The S&P/TSX Composite Index closed up 270.0 (2.07 per cent)
The Dow Jones closed up 235.6 (1.47 per cent)
Oil is trending higher ($48.54, WTI $45.42 at 4.25pm)
Gold is trending lower (1114.50 at 4.25pm)
The loonie is valued at U$0.7489
GDP data shows growth in Q3
Data from Statistics Canada shows that real gross domestic product grew 0.3 per cent in July, after rising 0.4 per cent in June. The growth in June and July followed five consecutive monthly declines from January to May. The increase in July was led by mining, quarrying, and oil and gas extraction, manufacturing, and the finance and insurance sector.
TransCanada changes tactic on Keystone XL
The legal battle between TransCanada and landowners in Nebraska appears to be over as the company says it is now seeking approval through the state’s Public Service Commission. Landowners say that it shows that they have won the battle and that TransCanada is just trying to save legal costs aware that construction will not be approved while President Obama is in office.
Newfoundland and Labrador to overhaul oil royalties
The generic offshore oil royalty regime is to be overhauled by the Newfoundland and Labrador government ahead of the provincial election in November. CBC reports that the government has been consulting with industry stakeholders and plans to finalize modifications in the coming weeks. The oil companies want certainty before committing to developing offshore projects. NDP leader Earle McCurdy said it was a “photo opportunity” for the government and that with oil prices so low it is the worst time to be restructuring royalties.