TSX lower as Chinese market fall hits sentiment
Global sentiment was lower Tuesday as Chinese stocks fell amid continued volatility for the yuan and weakness in the economy.
The poor showing for the Asian markets spread to Europe, where markets also closed lower, and then to North America with Wall Street and Toronto closing with losses.
The advance of gold miners, which kept the TSX above water in the previous session, was not repeated Tuesday as the metal’s price headed lower.
The S&P/TSX Composite Index closed down 57.66 (0.40 per cent)
The Dow Jones closed down 33.84 (0.19 per cent)
Oil is mixed (Brent lower at $48.54, WTI higher at $42.44 at 4.20pm)
Gold is trending lower (1116.80 at 4.20pm)
The loonie is valued at U$0.7656
Canada Pension Plan invests in Malaysian real estate
The CPP has invested $170 million in Malaysian real estate including a shopping mall, corporate buildings and luxury homes. It’s a joint venture with Pavilion Group of Malaysia with the CCPIB taking a 49 per cent stake. It’s the plan’s first foray into Malaysian property.
Ontario messaging company gets $50 million investment from China
Kik Interactive has received a $50 million investment from China’s Tencent Holdings. The deal values the Waterloo-based messaging app company at $1 billion. The stake has not been disclosed but the firm aims to use the cash for expanding its services and hiring staff.
Canadian firm secures space elevator patent
Thoth Technology has been granted a patent in the US for its space elevator invention. The Ontario firm has created the 20 kilometre lift
which it says would save more than 30 per cent of the fuel required by a conventional rocket. The freestanding structure aims to send astronauts into space using pneumatic pressure. It will cost up to U$10 billion and take up to five years to build.
New deal for K+S could scupper Potash Corp. plan
German owned potash miner K+S has secured a new contract to supply Koch Industries in a deal which could help avoid a takeover by Saskatchewan’s Potash Corp. The firm’s Legacy mine is next to Potash’s operations but the Globe and Mail reports that the new deal will see about a quarter of its output going to Koch when production starts next year. Potash Corp. made an offer of $45 per share on August 7 but K+S says that undervalues the mine.
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