Canadian Stocks Rebound after Bank of Canada Says Europe Unlikely to Derail Growth
Canadian stocks are clawing back earlier losses with the main Toronto market gauge turning positive in recent minutes after the Bank of Canada said economic growth will be stronger this year than previously forecast. Declines for crude oil and gold limited gains early in today's session while technology stocks slumped following disappointing earnings last night by several sector bellwethers.
The Canadian central bank said the risk of declines in Europe or the U.S. spilling over into the Canadian appear to be diminishing, noting that "global uncertainty will have less of a dampening effect on the spending of Canadian households and businesses in coming quarters." It also kept its benchmark lending rate at 1%.
Here's where the Canadian markets stand this morning:
- S&P/TSX Composite index is up 11.85 (+0.10%) to 12,148.79
- S&P/TSX Venture Composite Index is down 2.66 (-0.19%) to 1,419.64
In company news, pharmacy-benefit manager SXC Health Solutions Corp.( SXCI ) is up more than 8% and has hit year highs after agreeing to buy rival Catalyst Health Solutions Inc. ( CHSI ) for about $4.14 billion in cash and stock.
U.S.-listed shares of Ivanhoe Mines Ltd ( IVN ) are up more than 10% after Robert Friedland, the miner company's founder and CEO, agreed to step down as part of a financing deal worth as much $1.8 billion with its majority shareholder Rio Tinto that will help fund construction of the Oyu Tolgoi copper-gold project in Mongolia.
Also today, Baytex Energy Corp ( BTE ) is lower after agreeing to sell several of its properties in the Williston Basin oil and gas play in North Dakota to Magnum Hunter Resources Corp ( MHR ) for $311 million in cash. The transaction is expected to close May 22.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
The Canadian central bank said the risk of declines in Europe or the U.S. spilling over into the Canadian appear to be diminishing, noting that "global uncertainty will have less of a dampening effect on the spending of Canadian households and businesses in coming quarters." It also kept its benchmark lending rate at 1%.
Here's where the Canadian markets stand this morning:
- S&P/TSX Composite index is up 11.85 (+0.10%) to 12,148.79
- S&P/TSX Venture Composite Index is down 2.66 (-0.19%) to 1,419.64
In company news, pharmacy-benefit manager SXC Health Solutions Corp.( SXCI ) is up more than 8% and has hit year highs after agreeing to buy rival Catalyst Health Solutions Inc. ( CHSI ) for about $4.14 billion in cash and stock.
U.S.-listed shares of Ivanhoe Mines Ltd ( IVN ) are up more than 10% after Robert Friedland, the miner company's founder and CEO, agreed to step down as part of a financing deal worth as much $1.8 billion with its majority shareholder Rio Tinto that will help fund construction of the Oyu Tolgoi copper-gold project in Mongolia.
Also today, Baytex Energy Corp ( BTE ) is lower after agreeing to sell several of its properties in the Williston Basin oil and gas play in North Dakota to Magnum Hunter Resources Corp ( MHR ) for $311 million in cash. The transaction is expected to close May 22.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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