Canada's main stock index jumped 1% shortly after the open on Thursday before settling later in the first hour, with bank and resource stocks leading a broad rebound from Wednesday's hefty losses.
Toronto’s S&P/TSX composite index 53.90 points to begin Thursday at 14,465.97
The Canadian dollar moved forward 0.26 cents at 78.72 cents U.S.
Pacific Rubiales Energy Corp said that Mexican industrial conglomerate Alfa SAB de CV and energy investment firm Harbour Energy Ltd has dropped their plans to buy the Canadian oil and gas company.
The $2-billion offer, first made in May will terminate immediately, Pacific Rubiales said in a statement, adding that it is not obligated to pay a termination fee. Rubiales shares dipped $2.10, or 40%, to $3.15.
K+S finance chief Burkhardt Lohr denied the German potash miner had set 50 euros per share as a minimum it expected Potash Corp of Saskatchewan Inc. to offer for the group, according to a newspaper interview.
K+S rejected Potash Corp's 7.9-billion-euro ($8.8-billion) bid proposal last week, saying it was too low and that the Canadian suitor could be planning to dismantle the company, putting jobs at risk. Potash shares fell 45 cents, or 1.2%, to $36.76.
Canaccord Genuity starts coverage on Oryx Petroleum with a hold rating and with price target of $4.00 based on the company’s growth potential, good upside and great management. Oryx shares faded 14 cents, or 5.2%, to $2.57.
AltaCorp cut the price target on WestJet Airlines to $35.00 from $42.00 as a lower than expected RASM guidance remains a cause of concern for the company. WestJet slid 14 cents to $24.79.
On the economic beat, Statistics Canada reported this morning that The New Housing Price Index rose 0.2% in May, following a 0.1% increase in April.
Moreover, Canada Mortgage and Housing Corporation reported the seasonally adjusted annualized rate of housing starts rose to 202,818 units in June from a downwardly revised 196,981 units in May. Forecasters had expected 190,000 starts.
ON BAYSTREET
The TSX Venture Exchange regained 2.57 points to 640.26.
All but two of the 14 TSX subgroups were in positive territory, with global base metals recouping 2.5%, metals and mining gaining 2.4%, and health-care up 0.8%.
Utilities proved the only loser, off 0.2%, while gold was unchanged.
ON WALLSTREET
U.S. stocks rebounded on Thursday from a recent decline as a jump in Chinese stocks overnight boosted investor sentiment.
The Dow Jones industrial average ballooned 176.31 points, or 1%, at 17,691.73
The S&P 500 picked up 21.98 points, or 1.1%, to 2,068.66.
The NASDAQ index gained 59.53 points, or 1.2%, to 4,969.29
Earnings are also in focus, with PepsiCo and Walgreens Boots Alliance posting results before the bell.
Pepsico reported adjusted quarterly profit of $1.32 U.S. per share, eight cents above estimates, with revenue also beating forecasts.
The firm's profit margins expanded during the quarter, and it raised its full-year forecast although it adds that currency will have a negative impact of 11 percentage points on full-year profit.
Walgreens Boots Alliance earned an adjusted $1.02 U.S. per share for its latest quarter, 15 cents above estimates, though revenue was shy of forecasts. The drug store operator also raised its full-year earnings forecast, and increased its quarterly dividend by 6.7% to 36 cents U.S. per share.
On the economic front, weekly U.S. jobless claims gained slightly to 297,000, the highest level since February.
Prices for 10-year U.S. Treasuries faded, raising yields to 2.27% from Wednesday’s 2.20%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.42 a barrel to $53.07 U.S.
Gold prices gained 40 cents at $1,163.90 U.S. an ounce.
Related Stories
