TSX, Oil prices plunge
Thursday was dominated by oil. Prices, already under pressure from recent forecasts, fell more than 3 per cent as US stockpiles were reported as four times higher than the markets were expecting; and OPEC forecast that it would be adding ½ million barrels a day to the global glut if it continues its current production levels. Energy stocks were dragged lower along with financials.
Wall Street also closed with large losses, the main indexes down more than 1 per cent, while some European indexes fell more sharply to near 2 per cent losses. Asian markets had closed earlier in the day with mixed fortunes for the major indexes.
The S&P/TSX Composite Index closed down 214.8 (1.61 per cent)
The Dow Jones closed down 254.2 (1.44 per cent)
Oil is trending lower (Brent $44.14, WTI $41.62 at 4.10pm)
Gold is trending lower (1084.0 at 4.10pm)
The loonie is valued at U$0.7528
Ontario government’s $5 billion Hydro One windfall
The IPO that sold off 15 per cent of the shares in Hydro One has led to almost $5 billion for the Ontario government. The IPO itself raised $1.83 billion with a deferred tax asset and other payments more than doubling the total. It means that the government is well on its way to the $9 billion it plans to raise from the sale of 60 per cent of Hydro One. The money will fund infrastructure projects and also pay some of Hydro One’s debts.
Profit jump for Canadian Tire
Retail sales at Canada Tire have helped the firm to net income of $199.7 million for the third quarter, a rise of 20.5 per cent. Profit per share was $2.62. Total revenue increased 1.9 per cent to $3.13 billion.
Manulife profits dip as investments weigh
Investments in the oil and gas sectors, along with lower yields from other assets have hit profits at Canada’s largest insurance company. Manulife’s third quarter net income was down to $622 million from $1.1 billion a year earlier. That included a $285 million charge from an annual actuarial review. Core earnings fell just short of expectations at 45 per cent. Manulife’s Asian business interests grew by 30 per cent. Assets under management and administration increased 19 per cent.
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