Daily Wrap-up: TSX up as Fed doubts return

TSX up as Fed doubts return... Megadeals Monday for Canadian firms... Former PM joins global law firm...

Steve Randall
TSX up as Fed doubts return
North American markets outperformed those in other regions Monday as two Fed officials added a note of caution regarding interest rates.

Atlanta Fed chair Dennis Lockhart and Fed governor Lael Brainard sounded dovish tones which could suggest September is unlikely for the first rate hike with December again looking like the one.

Materials was by far the leading sector of the main TSX index, gaining more than 2.5 per cent; 6 of the 10 sectors gained.

Wall Street also closed higher following the Fed comments while European and Asian markets closed mostly lower.
The S&P/TSX Composite Index closed up 57.06 (0.39 per cent)
The Dow Jones closed up 239.6 (1.32 per cent)
Oil is trending higher (Brent $48.22, WTI $46.06 at 5pm)
Gold is trending lower (1331.10 at 5pm)
The loonie is valued at U$0.7662
Megadeals Monday for Canadian firms
Two multi-billion dollar deals were announced Monday. Open Text stocks jumped on news that an anticipated deal to acquire its biggest competitor, Dell Technologies’ enterprise content business was going ahead. The $1.62 billion deal is expected to close in the next 4 months.

Meanwhile, a massive merger between Agrium Corp and Potash Corp of Saskatchewan was announced with both companies hailing the creation of a new powerhouse while cutting $500 million in costs without widespread job cuts. The deal will create a U$36 billion Canadian agriculture chemicals giant.

Former PM joins global law firm
Former Canadian prime minister Stephen Harper is affiliating his consultancy business with global law firm Dentons. His Harper & Associates operation will be based in the law firm’s Calgary offices and will advise clients on market access, managing global geopolitical and economic risk, and how to maximize value in global markets.