Stocks fell and Treasuries climbed after a surprise increase in U.S. jobless claims added to concern the recovery from the pandemic-induced recession will need more time.
The S&P 500 moved away from its all-time high reached on Tuesday. Nvidia Corp. slumped after suggesting that growth of its data-center business will slow. Meanwhile, Intel Corp. rose on an announcement that it’s entering into accelerated agreements to buy back US$10 billion of shares.
Equities extended losses into a second day on speculation that a rally of more than 50 per cent from March lows has outpaced prospects for an economic rebound amid stalled negotiations on further stimulus measures. Federal Reserve minutes released on Wednesday signaled tempered optimism about growth in the second half of 2020, with policy makers noting that the health crisis would “weigh heavily” on activity.
“It remains to be seen whether sentiment towards risk has turned decisively negative or whether it was just profit-taking and a short-term pullback from overbought levels,” according to Fawad Razaqzada, an analyst at ThinkMarkets. “It is important not to jump to any conclusions.” It is very difficult to remain bullish on U.S. equities without witnessing a correction first, he said.
These are some of the main moves in markets:
The S&P 500 fell 0.5 per cent as of 9:30 a.m. New York time.
The Stoxx Europe 600 Index decreased 1.2 per cent.
The MSCI Asia Pacific Index sank 1.6 per cent.
The Bloomberg Dollar Spot Index gained 0.2 per cent.
The euro fell 0.2 per cent to US$1.1818.
The Japanese yen strengthened 0.2 per cent to 105.94 per dollar.
The yield on 10-year Treasuries declined four basis points to 0.64 per cent.
Germany’s 10-year yield decreased three basis points to -0.51 per cent.
Britain’s 10-year yield fell two basis points to 0.214 per cent.
The Bloomberg Commodity Index declined 0.9 per cent.
West Texas Intermediate crude decreased 2.3 per cent to US$41.95 a barrel.
Gold strengthened 0.2 per cent to US$1,932.85 an ounce.
Canadian security firm Garda goes hostile in $5.2B bid for British company G4S – CBC.ca
Garda World Security Corp. is making a hostile play for G4S after the British security company spurned its $5.2 billion US offer two weeks ago.
The Montreal-based company appealed directly to G4S shareholders by criticizing the firm’s directors and accusing them of acting in a “cavalier manner” by rejecting several approaches in recent months.
GardaWorld founder, president and CEO Stephane Cretier says that G4S faces profound difficulties and needs an owner and operator that understands the industry and has a well-defined plan.
The reputation of the GS4 has been damaged in recent years, especially for the lack of agents during the 2012 London Olympics to assure security.
Through its subsidiary Fleming Capital Securities, GardaWorld offered 190 pence for each share of the British company. On the London Stock Exchange, G4S shares gained 5.9 per cent at 200.30 pence in Wednesday trading.
GardaWorld unveiled the terms of its proposal on Sept. 14 in an attempt to force the hand of the British company, which has described the move as “highly opportunistic.”
Everything you need to know about the Canada Recovery Benefit, the new program replacing CERB – National Post
Article content continued
How do I know if I qualify for EI?
For the next year, accessing EI benefits is much easier. To qualify for EI, you must have been employed for at least 120 insurable hours in the past 52 weeks. If you received CERB, that 52-week deadline can be extended.
These changes will also establish a minimum weekly benefit rate of $500 for EI recipients, at the same level as CRB.
How much are the CRB payments and how often will I get them?
You will receive $500 per week for up to 26 weeks.
What other benefits are there?
The Canada Recovery Sickness Benefit (CRSB) provides $500 per week for up to two weeks for workers who are sick, or who must self-isolate for reasons related to COVID-19. People who receive paid sick leave from their employer are not eligible.
The Canada Recovery Caregiving Benefit (CRCB) provides $500 per week for up to 26 weeks per household for eligible Canadians unable to work because they must care for a child or family member.
You cannot claim CRCB or CRSB while on EI or CRB.
Is CRB taxable?
All benefits received under the three Canada Recovery Benefit programs are considered taxable income.
Where do I apply for CRB
Just like CERB, you will be able to apply for CRB through the Canada Revenue Agency (CRA) portal.
For more information, see the government’s website.
Canada's GDP grew 3 per cent in July – Yahoo Canada Finance
Canadian GDP expanded by 3 per cent in July, as the economic recovery from the effects of COVID-19 continues.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Statistics Canada says it was the third straight month-over-month increase, but the economy remains 6 per cent below its pre-pandemic level.” data-reactid=”24″>Statistics Canada says it was the third straight month-over-month increase, but the economy remains 6 per cent below its pre-pandemic level.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Growth is also slowing, considering June’s increase was 6.5 per cent.” data-reactid=”25″>Growth is also slowing, considering June’s increase was 6.5 per cent.
All 20 industrial sectors were higher.
Some industries faired better than before the pandemic. Agriculture, utilities, finance and insurance, and real estate rental and leasing sectors surpassed February’s levels.
The manufacturing sector grew 5.7 per cent as factories continued to ramp up production. Accommodation and food services jumped 20.1 per cent, the third straight double digit advance.
“But those figures come off a very low base and are still facing the deepest slump versus year-ago levels. With the resurgence in virus cases, the struggles in those sectors could actually deepen further in the near-term,” said Benjamin Reitzes, director, Canadian rates & macro strategist at BMO.
In another sign of slowing growth going forward, Statistics Canada estimates GDP grew by 1 per cent in August.
“Together, the data are consistent with our call for a roughly 46 per cent annualized gain in Q3 GDP, but the slowing in August, coupled with the surge in the virus in recent weeks, suggest a much smaller gain is in store for Q4,” said Avery Shenfeld, chief economist at CIBC World Markets.
For comparison, annualized GDP fell 38.7 per cent in the second quarter — the worst since Statistics Canada started tracking it in 1961.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.” data-reactid=”33″>Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Download the Yahoo Finance app, available for Apple and Android.” data-reactid=”34″>Download the Yahoo Finance app, available for Apple and Android.
Canada adds 1,796 new coronavirus cases, highest total yet for second wave – Global News
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