By Ketki Saxena
Investing.com -- At 11:05 a.m in Toronto, the S&P/TSX Composite Index was at 19,994.58 points or up 0.10% in the day’s trading, recovering somewhat from yesterday’s steep sell-off and a rally in crude prices. However, market sentiment remained definitely risk-averse ahead of U.S. Federal Reserve chair Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday.
Negative sentiment and worries of a global slowdown were further exacerbated by PMI data showing further contraction in Germany and France as decades-high inflation and unsustainable gas prices push Europe’s key economies into a recession.
While most major TSX sectors remained in the red this morning, the commodity-heavy Canadian index was supported by gains in energy, tracking gains in crude prices as the Saudi energy minister raised the prospect of a production cut yesterday.
Today’s Biggest Stories on Bay Street
Bank of Nova Scotia (TSX:BNS) reported profits largely in line with analyst estimates. Provisions for credit losses climbed, while revenue from capital markets activity and wealth management collapsed, while strong loan growth, particularly in its international business helped partially offset declines elsewhere. Adjusted to exclude certain items, Scotiabank said it earned $2.10 per share, short of the $2.13 consensus analyst estimate had expected.
Brookfield Infrastructure announced it will partner with Intel (NASDAQ:INTC) on a US$30-billion semiconductor project in Arizona at Intel’s two new factories at the company’s Ocotillo campus in Chandler, Arizona. Brookfield Infrastructure Partners LP will contribute US$ 15 billion and own 49% of the venture, with Intel owning the other 51%. The investment is part of a deal between Intel and Brookfield in February this year to explore project finance options to help fund new Intel manufacturing sites.
TFI International Inc (TSX:TFII) had its target price raised by a number of Canadian banks including Scotia, RBC (TSX:RY), National Bank of Canada (TSX:NA), and BMO (TSX:BMO); while TD (TSX:TD) reiterated its buy rating. Analysts look favourably upon the company’s decision, announced yesterday to sell its CFI truckload, temp control and Mexican non-asset logistics businesses to Heartland Express Inc. for US$525 million.
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German Chancellor Olaf Scholz announced today in Toronto that he hopes that Canadian liquid natural gas will play a "major role" as Germany seeks to reduce its dependency on Russian energy imports.
"As Germany is moving away from Russian energy at warp speed, Canada is our partner of choice," said Scholz as he concludes his two-day trip to Canada, adding that. "For now, this means increasing our LNG imports. We hope that Canadian LNG will play a major role in this."
The logistics remain unarranged at the moment and will be complicated by Canada’s lack of LNG export terminals.