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TSX Set for Strong Start As Oil Prices Rise; Laurentian Bank Earnings Could Weigh

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Canada's benchmark index looked set to start the Tuesday session in the positive territory, lifted by rising oil prices , although below-forecast earnings from Laurentian Bank (LB.TO) may limit gains.

Action Economics said the latest bullish cue has been news that two Gulf of Mexico oil platforms have been evacuated due to hurricane risk, which adds to news of renewed problems in Libyan supply and an accident at a Venezuela facility. The news developments have hit an already bullish market on diminished Iranian supply. The US re-imposed sanctions on Aug. 7 that prohibits Iran's purchases of US dollars and precious metals and will add a second round of sanctions on Nov. 4, which will directly target Iran's energy sector. Even though the first round didn't specifically target crude, preliminary trade flow data last week showed that Iran's crude oil and condensate exports are set to drop by 70 million barrels for the first time since April 2017.

In corporate news, Laurentian Bank said on an adjusted basis, net income totaled $59.4 million or $1.34 diluted per share for the third quarter of 2018, down 1% and 18% respectively, compared with $59.9 million or $1.63 diluted per share for the same period in 2017. It missed forecasts of around $1.45. Total revenue increased by $12.7 million or 5% to $260.7 million for the third quarter of 2018 from $248.0 million for the third quarter of 2017.

The TSX lost 108 points on Friday, led lower by energy stocks.

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

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

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