Canada's main stock index fell on Monday, tracking crude oil prices, while shares of Home Capital Group jumped after the mortgage lender agreed to be taken private in a $1.27-billion deal.
The TSX Composite let go of 168.48 points to pause for lunch at 19,812.43.
The Canadian dollar fell 0.60 cents to 74.14 cents U.S.
Home Capital soared $15.18, or 56.1%, to $42.23 after the mortgage lender said it would be acquired by Smith Financial
Corp.
This deal is seen as a breakthrough for Home Capital, according to analysts who believe the stock's price has been depressed since a 2015 independent investigation found that certain brokerages that the firm had contracts with had falsified information about borrowers' incomes.
Manulife Financial has become the first foreign financial firm to receive regulatory approval in China to take full
control of a funds joint venture. Manulife shares retreated 44 cents, or 1.9%, to $23.13.
AltaGas said President and CEO Randy Crawford will step down from his roles in the first half of 2023. AltaGas shares ditched five cents to $42.12.
ON BAYSTREET
The TSX Venture Exchange folded 7.05 points, or 1.2%, to 568.83.
Seven of the 12 TSX subgroups lost ground, weighed most by energy, faltering 4.8%, health-care, dumping 2.2%, and materials, off 1.3%.
The five gainers were led by consumer staples, up 0.7%, consumer discretionary stocks, 0.6%, and industrials, stronger by 0.3%.
ON WALLSTREET
Stocks fell Monday in a volatile session to start a short trading week due to the Thanksgiving holiday.
The Dow Jones Industrials stumbled 99.85 points to 33,645.84, boosted a bit by shares of Disney.
The S&P 500 dipped 21.96 points to 3,943.38.
The NASDAQ swooned 113.10 points, or 1%, to 11,032.96.
Energy stocks led declines, falling with the price of oil, after a Wall Street Journal report said that Saudi Arabia and other OPEC+ producers are weighing a potential increase in output of 500,000 barrels per day, a move that could help tensions with the U.S. and the flow of oil amid the war in Ukraine. It would also be a reversal from the group’s decision to cut production last month.
Fears that China may again ramp up COVID restrictions after reporting deaths from the virus also weighed on markets.
Shares of Disney rose more than 7% after the company announced that former CEO Bob Iger would return to the helm of the entertainment giant, replacing Bob Chapek immediately. Iger’s return to Disney ends a brief and rocky tenure for Chapek, who took over the CEO role in February 2020.
The New York Stock Exchange will be closed Thursday for Thanksgiving, and will have a shortened trading day on Friday. This week, traders will be digesting further speeches from Federal Reserve leaders as well as earnings reports from Best Buy, Nordstrom, Dick’s Sporting Goods and Dollar Tree.
Prices for the 10-year Treasury inched up, lowering yields to 3.80% from Friday’s 3.81%. Treasury prices and yields move in opposite directions.
Oil prices flopped $4.48 to $75.60 U.S. a barrel.
Gold prices sank $18.60 to $1,735.80 U.S. an ounce.
