By Ketki Saxena
Investing.com – The Canadian index tracked Wall Street higher today, as US Durable Orders contracted sharply in January, down 4.5% compared to 5.1% growth in December, paring back bets on future rate hikes from the Federal Reserve.
Despite being buoyed by dip-buying, a rise in growth stocks, and declines in US treasury yields, indices remain close to six-week lows as investors continue to expect higher rates. Money markets are pricing in a Fed terminal rate of 5.4%, expected to be reached by the September meeting.
The commodity heavy Canadian index remained pressured by crude prices, which remain depressed on Fed fears, expectations for Russian export cuts, and over the weekend, news that Russia has halted supplies of oil to Poland via the Druzhba pipeline.
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TD (TSX:TD) bank has agreed to pay over US$1.2 billion to settle a lawsuit from over a decade ago, brought by investors claiming the bank aided R. Allen Stanford’s $7 billion Ponzi scheme, Settlements also were reached with HSBC Holdings Plc (LON:HSBA), which will pay $40 million, and Independent Bank Group Inc. which will pay $100 million. The banks have denied wrongdoing related to the Ponzi scheme, but have been accused of ignoring red flags for years.
Auto parts provider LKQ Corporation (NASDAQ:LKQ) announced that it will buy Quebec-based Uni-Select in an all-cash deal valued at about $2.1 billion. Uni-Select’s shareholders will get $48 per share in cash, a 19% premium over Friday’s closing price. Uni-Select has has over 5,000 employees in Canada, the U.S. and the U.K.
Li-Cycle Holdings Corp. will receive a US$375 million loan from the U.S. Department of Energy to create a battery facility near Rochester, New York to produce recycled battery-grade lithium. The facility, which is expected to be the first of its kind in North America, will meet the battery needs of around 203,000 electric vehicles (EVs) each year, according to the U.S. Department of Energy.
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Statistics Canada reports that the country’s current account balance recorded a $10.6 billion deficit in the fourth quarter, up $2.2 billion from the previous quarter, on a seasonally adjusted basis. The national statistics agency notes that the higher deficit mainly reflected a deterioration of the investment income balance, while the goods and services deficit narrowed slightly. The agency notes that “For the year, the strength in commodity prices, the substantial raise in interest rates, the decline in global stock markets as well as the loosening travel restrictions all had significant impact on balance of payments flows in 2022”.