TSX soars as oil prices advance
The main index of the Toronto Stock Exchange, along with other major equity markets closed higher Monday with energy stocks leading the pack.
Oil prices advanced around 2 per cent as Russia hinted at possible talks with OPEC while US gasoline prices were up 3 per cent. Analysts generally remain bearish on oil futures though.
Wall Street joined the TSX in advancing by triple digits while Asia and Europe also closed with strong gains; London and Frankfurt both increased around 3 per cent.
The S&P/TSX Composite Index closed up 212.5 (1.59 per cent)
The Dow Jones closed up 302.9 (1.84 per cent)
Oil is trending higher (Brent $49.43, WTI $46.41 at 4.05pm)
Gold is trending lower (1134.80 at 4.05pm)
The loonie is valued at U$0.7638
Suncorp makes hostile bid for Canadian Oil Sands
Suncorp Inc. has made a C$4.3 billion bit for Canadian Oil Sands Ltd. The all-stock offer pushed Canadian Oil Sands’ stock up 48 per cent midday Monday. The offer of a quarter of a Suncorp share for each Canadian Oil Sands share values the target at $9 per share; a far cry from the $23 that it was worth last year and down from the 0.32 of a share that was discussed by the two companies earlier this year. Canadian Oil Sands has asked shareholders to give the company time to respond before accepting the offer.
Trans-Pacific Partnership signing welcomed
Monday’s signing of the Trans Pacific Partnership by Canada has been welcomed by many in the Canadian business community. Dairy farmers and auto parts manufacturers will be facing increased competition from Japan and other countries but the deal is expected to increase global trade for many sectors of Canadian business. The Canadian auto workers’ union Unifor says that the TPP could cost the industry 20,000 Canadian jobs. The TPP opens up trade across nations that account for around 40 per cent of global GDP.
Bombardier cash reserves will run out next year says Scotiabank
Cash flow at Bombardier could mean the jet maker may be forced to raise funds by the middle of 2016 according to analysts at Scotiabank. With orders lacking and development costs for new models rising the company will eat through funds at its current rate. Book-to-bill ratios for the firm’s train and airplane divisions are both around 0.4 for 2015 to date.