Commodities boost TSX
The main index of the Toronto Stock Exchange got another boost Thursday as the US dollar’s decline helped commodity prices climb. Energy and mining firms were feeling the benefit.
The gain for some resources was not extended to oil though. Prices reversed following a proposed new tax by President Obama. The $10 a barrel charge would be paid by oil companies and used to fund green transport projects. Although analysts expect the proposal to fail in Congress it was enough to spook the fragile oil market.
Asian and European markets closed generally higher although Tokyo and Frankfurt were notable exceptions.
Wall Street closed slightly higher.
The S&P/TSX Composite Index closed up 181.5 (1.44 per cent)
The Dow Jones closed up 79.92 (0.49 per cent)
Oil is trending lower (Brent $34.49, WTI $31.77 at 4.25pm)
Gold is trending higher (1156.30 at 4.25pm)
The loonie is valued at U$0.7276
Shell, LNG Canada venture put on hold
The proposed joint venture between Royal Dutch Shell and LNG Canada in BC has been put on hold. Shell announced a 56 per cent drop in fourth quarter profits Thursday and, along with LNG, said that the investment decision for the Kitimat export terminal would now be made later in 2016 rather than spring as was expected.
Insolvency proceedings for Daniel Leather
In another blow to Canada’s retail sector Daniel Leather announced Thursday that it is seeking insolvency protection as it tries to find a buyer. Operating losses at the company over recent years are expected to continue this year and will add to the $27 million of losses in the past two years. The firm has enough funds to remain trading including the payment of wages.
Luxury vehicle sales gained in January
Auto sales increased by more than 9 per cent year-over-year in January with imported cars up 22 per cent. Luxury models were especially popular with Canadian buyers with crossover models up 25 per cent.
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