By Ketki Saxena
Investing.com – The TSX tracked Wall Street indices lower at midday, as weak economic US data stoked worries of a recession. U.S. job openings in February dropped to the lowest level in nearly two years, while factory orders fell for a second straight month.
The data dragged down stocks related to industrials, materials, and energy - the sectors most sensitive to a slowdown.
The commodity heavy Canadian index was also pressured by a slide in crude prices, driven by weak data from both the US and China, stoking worries of a recession and raising demand concerns. There’s also certainly a fair bit of profit taking, following oil’s 6% jump yesterday following a surprise output cut from OPEC +.
The Biggest Stories on Bay Street
After Teck Resources (TSX:TECKa) rejected an unsolicited offer from Glencore (LON:GLEN) PLC yesterday, sources familiar with the matter say that Teck is willing to entertain offers from potential buyers (including Glencore) - but only after it finishes the spinoff of its steelmaking coal business. The vote on separating Teck’s metals and coal divisions will take place on April 26 shareholder. If investors approve, the split is expected to happen by the end of May.
The Canada Life Assurance Co. has signed a deal to acquire wealth management firm Investment Planning Counsel Inc. from IGM Financial Inc . for $575 million. The company noted that estimated transaction and integration costs of $25 million pre-tax are expected over 12 to 18 months after the deal closes.
IGM Financial (TSX:IGM) announced it will purchase a 20.5% stake in Rockefeller Capital Management for US$622 million. IGM is now Rockefeller's second largest shareholder, after Viking Global. The deal is designed to increase IGM’s access to ultra-high-net-worth clients in the U.S. Both IGM and Canada Life Assurance co are subsidiaries of the Power Corporation of Canada.
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In Canadian Economics
Deputy Bank of Canada Governor Paul Beaudry has announced he will leave his position at the end of July, returning to his job as an economics professor at the University of British Columbia. Beaudry is one of two deputy governors who oversee the Bank of Canada’s financial system activities. The Canadian central bank will now begin internal recruiting to fill the soon to be empty position.