TSX outperforms most global stocks
Global stock markets closed with losses Wednesday as concern over oil prices combined with regional data to prompt another sell-off.
Oil prices were further impacted as the head of the International Energy Agency said that he expected oil prices to remain lower through 2016 with low investment, reduced demand and Iran adding to supplies.
The main index of the TSX managed to end the session with a very slight gain while most Asian and European indexes closed lower, except for Shanghai; Wall Street also closed lower with the Nasdaq down 1.48 per cent.
The S&P/TSX Composite Index closed up 15.12 (0.12 per cent)
The Dow Jones closed down 75.70 (0.43 per cent)
Oil is trending mixed (Brent up at $40.29, WTI down at $37.22 at 4.15pm)
Gold is trending lower (1072.20 at 4.15pm)
The loonie is valued at U$0.7369
Tax cuts for ‘middle-classes’ approved
The Liberal government’s tax cut for middle earners was given the approval of the House of Commons Wednesday. The increased tax rate for the top 1 per cent of Canadian earners was also approved. Both will take effect from the start of 2016.
CIBC says loonie could fall to 70 cents
The Canadian dollar could have a few more cents to drop against the greenback according to CIBC. Although it is recovering a little this afternoon the loonie has been weakening for some time and could be heading to 70 cents early in 2016. However, the outlook is that it will be a relatively short-lived fall before recovery.
Lululemon shares fall as earnings miss
Shares in Vancouver yoga firm Lululemon fell 12 per cent Wednesday as its quarterly results showed lower profits despite higher revenues. Revenue was up 14.4 per cent to U$479.7 million but profit slipped to $53.2 million (earnings per share of 38 cents) from $60.5 million (42 cents per share) in the same quarter of 2014.