News from Reuters

CA-BUSINESS Summary

09/07/09

Rising commodities help TSX snap three-day skid

TORONTO (Reuters)- Toronto's main stock index snapped a three-session skid on Thursday, finishing more than 1 percent higher as a rise in commodity prices gave a boost to the resource-heavy market. Forecast-beating results from U.S. bellwether Alcoa helped lift market sentiment early in the day, with the upbeat mood spreading to key commodity prices such as gold and oil.

Canada housing starts up for 2nd straight month

TORONTO (Reuters) - Canadian housing starts rose in June for a second consecutive month, adding further proof that the sector was on the mend after building activity fell to a nine-year low earlier this year. New home construction rose 8 percent last month to a seasonally adjusted rate of 140,700 units, beating average expectations of 130,000 starts, and encompassing both single and multiple segments, Canada Mortgage and Housing Corp said on Thursday.

Canada equities to rally over next 18 months: CIBC

TORONTO (Reuters) - Canadian households and businesses are still flush with cash and that extra capital will likely find its way into equity markets and help pull the country out of recession over the next 18 months, according to a report by CIBC World Markets on Thursday. The rapid growth in recent quarters of the M2 money supply -- a measure of cash outside banks as well as personal and other deposits -- suggests that stocks are probably set to rally higher, CIBC Chief Economist Avery Shenfeld said in a release.

Canada vows to set new debt targets this year

OTTAWA (Reuters) - Canada still aims to reduce its debt-to-GDP ratio to 25 percent, Finance Minister Jim Flaherty said on Thursday, but he could not say how long it might take to reach that goal, which was abandoned during the recession. Before the global financial crisis, the Conservative government had pledged to reach the 25 percent target by 2011-12. But the budget in January of this year said the debt-to-GDP ratio would rise to about 32 percent in March 2011 from 29 percent and there was no reference at all to the 25 percent target.

Chevron says Q2 hit by U.S. refining, weak dollar

SAN FRANCISCO (Reuters) - Chevron Corp warned that second-quarter earnings would be hit by a sharp decline in U.S. refining margins and that any benefits from higher oil prices were largely offset by a weaker dollar, sending its shares down 1.8 percent. The outlook from the second-largest U.S. oil company only contributed to the gloom surrounding the country's refiners in the face of toughening regulation and a depressed fuel market.

Canpotex inks potash contracts in Korea, Taiwan

TORONTO (Reuters) - Potash Corp of Saskatchewan said on Thursday its export consortium Canpotex has signed a contract with customers in Korea and Taiwan covering potash shipments for the second half of 2009. Potash Corp, the world's largest fertilizer maker, said the new contract that varied based on the grade of potash, priced in the range of $700 a tonne on a delivered basis.

Shell says may sell or shut Canadian refinery

CALGARY/LONDON (Reuters) - Royal Dutch Shell Plc said on Thursday it is conducting a strategic review of its Montreal East refinery, which may lead to a closure or sale as the industry struggles with weak profit margins. The Anglo-Dutch oil major will decide in the coming months the future of the 130,000 barrel per day crude processing facility, which could also result in its continued operation by Shell or conversion into a terminal, a spokesman said.

Indefinite strike at Kinross Chile gold mine: union

SANTIAGO/TORONTO (Reuters) - Striking union workers at miner Kinross Gold Corp's La Coipa gold mine in Chile said they had paralyzed output and would continue their protest indefinitely unless pay demands are met. Kinross, Canada's No. 3 gold producer, said the strike, which began on Wednesday, was affecting output of about 300 ounces of gold production per day, though union leader Nibaldo Orrego said daily production averages around 800 ounces.

Loonie rises on firmer oil, risk aversion fades

TORONTO (Reuters) - The Canadian dollar climbed against the U.S. dollar on Thursday as higher commodity prices and a rebound in global equities helped ease investor aversion to risk, boosting currencies perceived to be riskier than the greenback. The rise in the Canadian dollar, which rallied as high as C$1.1547 to the U.S. dollar, or 86.60 U.S. cents, lifted it comfortably off the seven-week low it touched this week.

Oil rises, snaps six-day slide on gasoline buying

NEW YORK (Reuters) - Oil prices rose slightly on Thursday as talk of refinery shutdowns spurred stirred gasoline supply concerns, ending a six-day slide. U.S. crude settled up 27 cents at $60.41 a barrel after briefly dipping below $60 to the lowest level since mid-May. Crude had fallen from $71 in the previous six sessions.

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