Stocks lower ahead of Fed, concern over overvaluation
Global stocks closed lower Tuesday on concern that the minutes of the Fed’s July meeting released Wednesday could signal support for a September interest rate rise.
There is also concern that the recent surge in equities will not be sustained, prompting some sell-offs.
Energy firms have seen gains in the last few sessions as oil prices have advanced. US crude was up 1.8 per cent at the close Tuesday.
Toronto’s main index closed lower despite positive news for the Canadian manufacturing sector and rising oil and gold prices.
There were losses too for the three main Wall Street indexes and those in most Asian and European markets.
The S&P/TSX Composite Index closed down 73.58 (0.50 per cent)
The Dow Jones closed down 84.03 (0.45 per cent)
Oil is trending higher (Brent $49.24, WTI $46.64 at 4.30pm)
Gold is trending higher (1351.70 at 4.30pm)
The loonie is valued at U$0.7778
Canadian manufacturing bounces back
There was some positive news for Canada’s manufacturing sector Tuesday as Statistics Canada reported a 0.8 per cent rise in sales for June, following a 1 per cent drop in May.
Sales totalled $50.2 billion, driven by machinery and transportation equipment products which accounted for almost three quarters of the gain. Sales were up in 15 of the 21 industries, 62 per cent of the sector.
Couche-Tard might be buying CST but won’t confirm
Canadian convenience store giant Couche-Tarde is reportedly the lead bidder to acquire Texas-based store chain CST for at least U$3.4 billion. Although the firm won’t confirm it, the Wall Street Journal started speculation of the deal this morning. CST Brands is the firm behind the Corner Store and Dépanneur du Coin stores in Canada and there may be some issues with competition in Quebec and Ontario.
Aritzia eyes IPO
Fashion retailer Aritzia is preparing to go public with an IPO according to the Globe and Mail. Citing sources familiar with the matter the paper says that the papers could be filed this week. Private equity firm Berkshire Partners has held its investment in the expanding retailer for 11 years.
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