TSX closes flat ahead of US election result
World markets bet on a Clinton win in the US presidential election Tuesday but commodities declined to end the session lower.
The main TSX index closed flat with most sectors, including industrials and materials closing less than half a percentage point higher. Of the four sectors closing lower, utilities, IT and energy saw slim losses while the healthcare sector was down more than 5 per cent as Valeant slumped.
Wall Street’s main indexes saw better gains along with European and Asian markets; Tokyo was weaker as a stronger yen hit exporters’ stocks.
The S&P/TSX Composite Index closed up 4.39 (0.03 per cent)
The Dow Jones closed up 72.83 (0.40 per cent)
Oil is trending lower (Brent $45.79, WTI $44.72 at 4.20pm)
Gold is trending lower (1276.00 at 4.20pm)
The loonie is valued at U$0.7514
Valeant slumps 25 per cent on profits warning
Valeant Pharmaceutical won’t be returning to financial health anytime soon according to the firm’s latest financial results.
Its third quarter saw a U$1.3 billion loss, down from a $50 million profit a year earlier; and took a $1 billion charge on some US business units, particularly stomach drug manufacturer Salix.
The Quebec-based firm said that its earnings would be lower than expected in 2016 ($5.30 to $5.50 per share rather than $6.60 to $7.00) and that 2017 will also see subdued results.
Exports should grow as global economies strengthen
Canada’s exports are not where they should be now but should see growth ahead, the deputy governor of the Bank of Canada said Tuesday.
Lawrence Schembri said that exports have been restricted by growing protectionism in markets including the US; and there are some issues with productivity.
However, Schembri was optimistic that exports can gain as the US and other global economies grow. He told the Atlantic Institute for Market Studies in Halifax that Canadian exporters have historically overcome challenges and seized opportunities.