Daily Wrap-up: Gold up 2 per cent, TSX reverses losses

Daily Wrap-up: Gold up 2 per cent, TSX reverses losses

Daily Wrap-up: Gold up 2 per cent, TSX reverses losses Gold up 2 per cent, TSX reverses losses
With many analysts now betting on the Fed waiting until after the presidential election to raise interest rates, gold prices have benefitted and Tuesday they gained 2 per cent.

Oil also gained, with US crude rising almost 1 per cent although there was a decline for Brent. Experts have been assessing the deal announced between Russia and Saudi Arabia, although some have dismissed its potential to stabilize the market in the short term.

The main TSX index returned from the Labour Day break and was under pressure in early trading as financials and industrials weakened; later though the gains for materials and energy groups.

Wall Street also closed higher despite poor ISM non-manufacturing sector data with a slip to 51.4 on the PMI, down from 55.5 in July and below a Reuters’ poll expectation of 55.0.

European indexes were mixed following the US data while Asian markets closed before the release.
The S&P/TSX Composite Index closed up 17.29 (0.12 per cent)
The Dow Jones closed up 46.37 (0.25 per cent)
Oil is trending mixed (Brent down at $47.31, WTI up at $44.86 at 4.15pm)
Gold is trending higher (1354.00 at 4.15pm)
The loonie is valued at U$0.7786
TD eyes wealth management firm acquisition
TD Bank is among the bidders for wealth management firm Richardson GMP Ltd. The firm, which has $27.2 billion of assets under administration at the end of June, is in line to fetch at least $500 million but it is not known how much TD may have bid, but the Globe and Mail reports that it is in the second round of the auction. TD has not confirmed the bid.
Enbridge plans $37 billion Spectra takeover
Calgary’s Enbridge is planning to acquire Texas-based Spectra Energy Corp. for $37 billion and create the largest energy infrastructure firm in North America.

Enbridge’s CEO Al Manaco told analysts Tuesday that the combined entity would be headquartered in Calgary and he would remain as CEO while his Spectra counterpart, Greg Ebel, would become non-executive chairman of Enbridge.

The deal is expected to close in the first quarter of 2017.

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