TSX declines on oil slump
The main index of the Toronto Stock Exchange closed nearly 1 per cent lower Wednesday as oil prices slumped around 3 per cent amid data confirming a build in US stockpiles. The EIA’s data backed up an earlier API report and reignited concerns over the global supply glut.
With a stronger greenback and expectation of a US interest rate rise, gold prices were down almost 1.5 per cent.
Overall the materials group on the S&P/TSX Composite was down nearly 5 per cent and energy fell 1.5 per cent; all the sectors with the exception of telecoms were lower.
Wall Street’s main indexes were all lower while Asian and European markets closed mixed.
The S&P/TSX Composite Index closed down 138.5 (0.94 per cent)
The Dow Jones closed 65.82 (0.35 per cent)
Oil is trending lower (Brent $48.97, WTI $46.74 at 4.25pm)
Gold is trending lower (1327.70 at 4.25pm)
The loonie is valued at U$0.7735
RBC boosts dividend as profits rise
Net income at Royal Bank of Canada were up 17 per cent year-over-year in its third quarter to $2,895 billion. The sale of RBC General Insurance boosted profits by $235 million after tax.
Earnings per share were $1.88 compared to $1.66 in the same period a year ago and the bank announced that its dividend would be increased 2 cents to 83 cents per share.
Total revenue increased to $10.26 billion, up from $8.83 billion in Q3 2015.
LNG exports may not make environmental sense
Canada’s aim of becoming a major exporter of liquefied natural gas may not have the environmental benefits that were hoped.
A study by CD Howe authors James Coleman and Sarah Jordaan concluded that although switching to LNG would reduce carbon emissions in China, India, Taiwan and Japan; it was likely to increase it in 9 of the 13 anticipated export markets.
That’s because those markets already have sizeable greener energy sources.
Tim Hortons names new president
There’s a new president at Tim Hortons Canada as David Clanachan makes way for former finance head Sami Siddiqui. Clanachan is staying with the company as chairman of TH parent RBI Canada.