TSX closes flat despite 30 per cent jump for Valeant
Valeant Pharmaceutical stocks jumped 30 per cent Tuesday on reports that it is in talks to sell its Salix business unit for around $10 billion. The surge boosted the healthcare sector of the main TSX index by more than 8 per cent to be the leading sector of the session. It had been the laggard in the previous session.
The gains for healthcare, along with materials, energy and industrials were not enough to offset losses elsewhere, especially as the heavily weighted financials group declined. The index closed flat.
Wall Street and European indexes closed lower amid regional earnings and a focus on the Fed’s forthcoming interest rate decision. Asian indexes closed their session mostly higher.
The S&P/TSX Composite Index closed down 8.95 (0.06 per cent)
The Dow Jones closed down 105.3 (0.58 per cent)
Oil is trending lower (Brent $47.90, WTI $46.33 at 4.45pm)
Gold is trending higher (1289.10 at 4.45pm)
The loonie is valued at U$0.7469
GDP rise driven by goods producers
Goods producing industries pushed Canada’s GDP higher in August, rising 0.2 per cent, but it was half the growth of July. Service industries were essentially unchanged.
Statistics Canada reported that the goods producers increased output by 0.7 per cent, led by mining, quarrying and oil and gas extraction and utilities.
Inflation target helps provide certainty for financial plans says Poloz
Bank of Canada governor Stephen Poloz said Tuesday that renewing the bank’s inflation target with the government was good for Canadian businesses and consumers by providing some certainty for the financial plans.
Speaking at the Business Council of BC, the governor said the newly-renewed target, which has been in place for 25 years, helps Canadians invest and spend with confidence.
“The renewal of the inflation-targeting agreement sets us up to extend this track record of success for another five years,” the Governor said. “We will continue to observe and learn, ask questions, and make sure our monetary policy is truly doing its best until the next renewal in 2021,” Mr Poloz said.