By Ketki Saxena
Investing.com -- The TSX traded moderately higher this morning, tracking the Dow and S&P500 as risk-on sentiment rebounded, with investors continuing to bet on China rescinding its strict stance on lockdowns. Despite official denials from Beijing, investors appear to be betting that the behemoth economy will move towards a full reopening, boosting economic activity.
North American equities were also boosted by investor focus shifting to Tuesday’s US midterm elections. Republicans winning the House of Representatives and possibly the Senate looks like the likely outcome.
Further gains on the commodity-heavy Canadian index were capped by moderate losses in crude, as investors weigh the likelihood of Chinese demand rebounding.
The Biggest Stories on Bay Street
Energy company CEOs pushed back against a 2% tax on share buybacks introduced by the Liberals on Thursday, arguing the move will put the companies at a competitive disadvantage. Enerplus (TSX:ERF) CEO Ian Dundas said the tax was “truly tragic,” while Birchcliff Energy CEO Jeff Tonken said the new tax “goes directly against” current federal policy.
The public hearing on Rogers' $26 billion proposed takeover of Shaw Communications Inc begins today. The Competition Tribunal's hearing will aim to resolve the stalemate around the deal, currently blocked by the regulator on charges of materially affecting competition in the Canadian telecom sector.
Ritchie Bros. Auctioneers Inc. has signed a deal to acquire digital vehicle auction company IAA for US$7.3 billion. RBA will also assume US$1.0 billion worth of net debt. IThe purchase price is valued at US$46.88 per share, and represents a premium of about 19% t to IAA’s closing share price on Friday.
South Africa’s Gold Fields will not make a revised offer for Yamana Gold (TSX:YRI) after the surprise bid from Agnico Eagle and Pan American. The joint cash and stock offer from Agnico Eagle and Pan American on Friday surpassed the Gold Fields bid, which valued Yamana at around $4.2 billion at Thursday’s close.
Singapore’s sovereign wealth fund GIC and Canada’s Dream Industrial REIT (TSX:DIR_u) will acquire Canada’s Summit Industrial Income REIT for $4.46 billion excluding debt. GIC and Dream Industrial REIT will form a joint venture for the deal. GIC will own a 90% stake, and Dream Industrial REIT will own 10%.
Canadian Stocks Moving Markets This Morning
Top Gainers
- Summit Industrials
- Silvercrest Metals
- Dream Industrial REITs
Top Losers:
- Ritchie Bros
- Cronos
- Telus (TSX:T)
- In Canadian Economics
No Major Canadian Economic Data Expected Today