Suncorp forecasts gains, TSX closes higher
There was some positive news from the oil industry Thursday as Suncor Energy forecast that it will be increasing output and lowering costs in 2017. However, the energy sector of the TSX was one of the two to close lower as the current slide in oil prices continued.
Materials was the other weak sector while the gains among the other 8 were led by healthcare, utilities and industrials. Overall the TSX managed to close higher following declines earlier in the week.
On Wall Street, the talk was of interest rates as Fed chair Janet Yellen testified to a congress committee and said that rates would rise “relatively soon” which gave the three main indexes a lift.
European markets also closed higher while Asian indexes had closed flat earlier in the day.
The S&P/TSX Composite Index closed up 92.87 (0.63 per cent)
The Dow Jones closed up 35.68 (0.19 per cent)
Oil is trending lower (Brent $46.07, WTI $44.97 at 5pm)
Gold is trending lower (1216.30 at 5pm)
The loonie is valued at U$0.7401
Canadian investors favour foreign equities over debt securities
Canadian investors pushed their foreign securities holdings up to $1.8 billion in September but shifted towards equities while selling debt securities. They acquired $6.8 billion of foreign equities and sold $5 billion of debt securities.
Meanwhile, Statistics Canada said Thursday, foreign investors acquired $11.8 billion in Canadian securities, mainly new issues of corporate bonds.
As a result, international transactions in securities generated a net inflow of funds of $10.0 billion into the Canadian economy in September for a total of $25.6 billion in the third quarter.
Former Valeant executive arrested in US fraud probe
A former executive of Valeant Pharmaceuticals was arrested in the US Thursday in connection with an investigation into fraud and a kickback scheme.
Gary Tanner, along with former CEO of Philidor Rx Services, stand charged by the U.S. Attorney's Office for the Southern District of New York which alleges that the pair diverted Valeant shareholder funds for their own gains.
Valeant said that the company and its former chief executive and chief finance officer have not been charged with any offences and neither have its current executives.