TSX advances as oil gains 3 per cent
Oil prices started the session lower Wednesday as Alberta’s producers resumed output and analysts weighed the prospect of higher US stockpiles. However, when the US data came it showed the first draw for 6 weeks, pushing prices higher.
Resources stocks helped the main index of the TSX close slightly higher while Wall Street was hit by US retail figures showing a 4 per cent decline. Asian and European markets closed mixed.
The S&P/TSX Composite Index closed up 13.02 (0.09 per cent)
The Dow Jones closed down 212.7 (1.21 per cent)
Oil is trending higher (Brent $47.39, WTI $46.08 at 4.45pm)
Gold is trending higher (1278.90 at 4.45pm)
The loonie is valued at U$0.7783
BoC’s Wilkins sees growth despite headwinds
Bank of Canada deputy governor Carolyn Wilkins said Wednesday that there should be growth in the economy despite headwinds including a potential shock from China.
She told a panel that without rising inflation there is not the same need for sharp increases in interest rates that are often seen before downturns. While China could do worse than expected Ms. Wilkins believes that its economy will continue to grow even if the pace is slower.
BCE loses appeal over high-speed broadband resellers
Resellers of BCE’s highest-speed broadband product will continue to be able to do so following the rejection of an appeal to a CRTC ruling. BCE wanted the ruling overturned, saying that it has invested in the fibre technology and that forcing it to allow smaller companies to resell the service would impact investment. However, the government has rejected the appeal and the CRTC ruling stands.
SNC-Lavalin outsources IT operations
Engineering firm SNC-Lavalin is outsourcing the majority of its technology and IT operations to CGI Group in a deal worth $500 million. The agreement will last 12 years and means 400 IT employees will move from SNC to CGI. SNC says that the move will free up funds to reinvest in its competitiveness.