TSX declines on resources, Valeant
Thursday’s trading session ended almost as a mirror image of the previous session; instead of the world’s stocks ending the day lower and Toronto gaining global stocks have ended higher Thursday except for the TSX.
The reasons also had a sense of familiarity with resources and Valeant Pharmaceuticals in focus; although this time both were a drag. Seven of the main TSX index’s sub sectors gained but resources fell on concern over prices and global demand. Valeant dropped on news that it has been subpoenaed by US regulators investigating drug pricing. The company denies any wrongdoing.
Asian, European and Wall Street markets gained as expectations of the Fed hiking interest rates lowered.
The S&P/TSX Composite Index closed down 46.36 (0.33 per cent)
The Dow Jones closed up 217.0 (1.28 per cent)
Oil is trending mixed (Brent down at $48.70, WTI up at $46.99 at 4.35pm)
Gold is trending higher (1183.10 at 4.35pm)
The loonie is valued at U$0.7781
Business pessimism rises
Business sentiment has fallen sharply in the third quarter on anticipation of the election result. The Canada Business Monitor’s survey of professional accountants has shown a doubling of the percentage of respondents expecting negative economic prospects to 40 per cent since the previous quarter. Just 17 per cent thought the next 12 months would be positive. The last time pessimism was that high was in 2009 during the Great Recession.
Scotiabank expands credit card business
Scotiabank has agreed to buy the Canadian credit card business of JP Morgan. The Canadian bank will acquire the MasterCard and Sears portfolio with a combined 2 million customers and $1.7 billion in annual revenues. CBC reports that no financial details have been released.
Linamar makes European bid
Ontario’s Linamar Corp. has made a bid for French firm Montupet SA for $1.16 billion plus debt. It will be the largest acquisition for the Canadian auto-parts firm and the specialist aluminium production capabilities of Montupet will compliment Linamar’s existing business.