TSX drops as Magna, Valeant fall
Auto maker Magna and drug maker Valeant were among the drags on the main Toronto Stock Exchange index Thursday. Meanwhile oil prices dropped amid the supply glut and gold prices were lower on expectation of a US interest rate rise next month.
Wall Street also ended the session narrowly lower as cautious investors eye Friday’s jobs data which could edge the Fed nearer to a hike.
Asian markets were mixed with China and Japan outperforming the region and European markets were also undecided on the likelihood of the Fed making a move next month.
The S&P/TSX Composite Index closed down 103.0 (0.75 per cent)
The Dow Jones closed down 4.15 (0.02 per cent)
Oil is trending lower (Brent $48.11, WTI $45.33 at 4.20pm)
Gold is trending lower (1103.20 at 4.20pm)
The loonie is valued at U$0.7596
Hydro One IPO adds some excitement to trading day
There was a flurry of activity surrounding newly available shares in the Hydro One company Thursday. The IPO was one of the largest on the TSX for many years and saw the Ontario government selling off 81.8 million shares to raise money to fund infrastructure projects. Trading was brisk and saw the share price rise more than a dollar from the initial $20.50 offer price.
Job cuts at Telus
Vancouver-based Telus announced plans to save around $125 million in annual costs Thursday; a plan which includes 1,500 job cuts. The telecom firm said that the roles would be management and unionized jobs with voluntary buyout packages expected to be offered. The news came as Telus revealed third quarter results with revenue up 4.2 per cent year-over-year to $3.15 billion. Net income was up 2.8 per cent to $365 million with adjusted income up by the same percentage to total $398 million. Quarterly dividend will be 44 cents.
Consumer debt rises to $1.88 trillion
The latest figures from RBC show that Canadians now owe $1.88 trillion, up 5 per cent from the same time last year. Mortgage debt was the main driver of the increase, up 5.9 per cent ($74.9 billion) in the 12 months to October. While the Bank of Canada and many analysts have said that the debts are largely manageable there are also signs that housing is slowing down and corrections in prices could leave some consumers in danger of owing more than their home is worth.