adplus-dvertising
Connect with us

Economy

TD, BMO upgraded on hopes Biden, vaccine will boost US economy – BNN

Published

4 years ago

 on


CIBC World Markets is taking a rosier view of the two Canadian banks with the largest American footprint.

In a note to clients, CIBC Equity Analyst Paul Holden raised his ratings on Bank of Montreal and Toronto-Dominion Bank to the equivalent of a buy on expectations that Joe Biden’s victory in the U.S. presidential election and the prospects for a viable COVID-19 vaccine could accelerate a return to more normal economic growth internationally.

Holden also lowered his ratings on Royal Bank of Canada and National Bank to the equivalent of a hold.

Holden said that a more normalized economic growth trajectory could reduce the needs for the banks to set aside large amounts of cash to offset potentially sour loans. BMO and TD could then deploy that cash through share buybacks or potential acquisitions.

“We expect [the Office of the Superintendent of Financial Institutions] will lift capital restrictions at some point in 2021 and perhaps earlier in the year with vaccine distribution,” Holden said. “We see this as a potential catalyst for the [banks] with dividend increases and share repurchases being likely. M&A is also possible for TD and BMO.”

Both OSFI and its American regulatory counterpart have put restrictions in place to prevent banks from increasing their dividends or launching large-scale share buybacks in an effort to ensure the banks have adequate liquidity to weather a protracted downturn and surge in sour loans.

While Holden changed his view on TD and BMO, he warned that it will take time for those growth themes to play out.

“Fiscal stimulus, monetary stimulus, strong house prices and a vaccine should encourage consumer spending and business investment. This is a theme for 2021, not so much for the coming quarter,” he said.

Let’s block ads! (Why?)

728x90x4

Source link

Related Topics:
Continue Reading

Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

3 days ago

 on

September 13, 2024

By

 

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

Statistics Canada reports wholesale sales higher in July

Published

3 days ago

 on

September 13, 2024

By

 

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

4 days ago

 on

September 12, 2024

By

 

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending