By Ketki Saxena
Investing.com – The commodity heavy Canadian index opened the week in rally mode, supported by a jump in oil prices after OPEC+ surprised markets with another output cut.
OPEC+ announced that it will cut its production target by a further 1.16 million barrels per day (bpd), contrary to expectations that the bloc would stick with its prior decision to cut target output of 2 million bpd until December.
The total volume of cuts by OPEC+ now stands at 3.66 million bpd, equating to 3.7% of global demand.
Wall Street indices meanwhile traded mixed as rising Treasury yields pressured tech and growth stocks, while rising oil prices raised worries of more aggressive moves from the Federal Reserve on the prospect of a rebound in inflation driven by commodities.
The Biggest Stories on Bay Street
Teck Resources (TSX:TECKa) announced that it has rejected an unsolicited takeover offer from Glencore (LON:GLEN), reiterating that Teck is not considering a sale of the company at this time. Teck says the offer from Glencore was for 7.78 Glencore shares for each Teck class B subordinate voting share , and 12.73 Glencore shares for each Teck class A share. The offer price put a 20% premium on both Teck A and Teck B shares, as of the offer date.
Rogers Communications Inc (TSX:RCIa). has closed its $20-billion purchase of Shaw Communications Inc (TSXV:SJRa). after receiving regulatory approval last week, ending two years of challenges and regulatory scrutiny. Last week, Industry Minister Francois-Philippe Champagne agreed to the transfer of Shaw’s Freedom Mobile’s wireless licenses to Quebecor’s Videotron. The move was the final step to allow the go-ahead of the main deal.
Canadian Stocks Moving Markets Today
Top Gainers:
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Teck Resources Ltd Class B (TSX:TECKb)
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MEG Energy (TSX:MEG) Corp
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International Petroleum Corp (TSX:IPCO)
Top Losers:
In Canadian Economics
The Bank of Canada’s survey of business and consumer expectations shows that inflation expectations continue to recede, but are expected to remain above the 2% target for at least the next two years. The surveys also show that consumers expect to cut back on spending, and businesses anticipate sales will slow, as the Canadian economy faces a possible recession.