TSX closes higher as oil advances
The price of West Texas crude headed towards $35 Wednesday while Brent passed the $37 mark, giving energy firms’ stocks a welcome boost and pushing markets to a positive close.
Toronto’s main index ended the session up almost 30 per cent and there were similar gains in New York.
Asian markets closed higher led by gains from Shanghai and Tokyo, both up more than 4 per cent. European indexes were mostly higher with London the notable exception.
The S&P/TSX Composite Index closed up 35.83 (0.28 per cent)
The Dow Jones closed up 8.10 (0.41 per cent)
Oil is trending higher (Brent $37.16, WTI $34.88 at 4.10pm)
Gold is trending higher (1241.60 at 4.10pm)
The loonie is valued at U$0.7444
$3 billion deal for Canadian drugstores
Edmonton-based drugstore firm Rexall is to be bought by a US healthcare firm in a deal worth $3 billion. The sale to McKesson Corp. will not mean the end to the Rexall and Pharmaplus brands. Although the firms expect the deal to close in the second half of this year there are a number of regulatory hurdles that the transaction faces, particularly in relation to competition laws.
Canada’s natural gas could soon be below $1
Prices for Canadian natural gas could fall below $1 per thousand cubic feet according to FirstCapital Energy. With prices already an 18-year low of $1.24 per mcf and storage levels higher than their 5-year average the firm’s analysts are predicting lower prices for some months.
Federal government will support Bombardier says Quebec premier
Philippe Couillard, Quebec’s premier, told reporters Wednesday that he expected support for Bombardier from the Canadian federal government. The province has backed the aircraft manufacturer with $1 billion but more assistance is required. Mr Couillard said he thinks that Ottawa will support the aerospace sector in general too.