Energy, Mining Stocks Pacing Declines for Canadian Markets Today; TSX Has Been Down 200 Pts All Session

By Staff,

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The main Canadian stock market has been down more than 200 points all session with all 10 industry sectors in the S&P/TSX Composite Index posting declines on disappointment about the quality of some Canadian and U.S. earnings this season, continuing concerns about the Spanish and European economies and oil supply threats from Iran. Commodity-related stocks are taking the hardest hits today, with energy stocks down 2.4% as a group while the Metals & Mining sector is down 3%.

In economic news, Canada's central bank today left its key interest rate unchanged at 1%, although the Bank of Canada said "over time, some modest withdrawal of monetary policy stimulus will likely be required."

Also today, Statistics Canada reported retail sales rose 0.3% to $39.1 billion during August. After removing the effects of price changes, particularly higher food and gasoline prices, retail sales in volume terms declined 0.3%.

Here's where the Canadian markets stand today:

- S&P/TSX Composite Index -213.62 -1.7% 12,189.9

- S&P/TSX Venture Composite Index -23.46 -1.8% 1,284.95.

In company news, TD Bank Group (TD,TD.TO) moved to acquire Target Corp's ( TGT ) existing U.S. Visa and private label card portfolio, with a current gross outstanding balance of $5.9 billion.

The companies also have inked a seven-year pact with TD becoming the exclusive issuer of Target-branded Visa and private label consumer credit cards to its U.S. customers. Under the terms of the program agreement, TD and TGT will share in the profits generated by the portfolios, with TGT having the more substantial interest.

TGT also will be responsible for all elements of operations and customer service and will bear most of the operating costs to service the assets. TD will control risk management policies and regulatory compliance and will bear all costs related to funding the portfolio. In addition, TD will have a team on-site in Minneapolis to work with existing TGT staff in overseeing the program.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: TGT

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