MID-DAY: Pipeline limbo weights TSX; Kinder Morgan votes to hand off project to Ottawa
A major hit against a billion-dollar pipeline project is hammering the TSX.
The Bay Street index is falling 29 points to 16,360 after the Federal Court of Appeals put the TransMountain Pipeline Expansion on hold indefinitely. The court ruled Ottawa approved the project on a flawed report from the National Energy Board. Kinder Morgan shareholders quickly voted to approve the sale of the project to Ottawa for $4.5 billion after the announcement.
The TSX was getting a boost after StatsCan reported Canada’s economy grew by 2.9 per cent in the second quarter, although it fell 0.1 per cent short of economist predictions.
Across the border, Wall Street is also feeling weight from the ongoing trade war between China and the US. China’s economy is reportedly starting to feel the burn of US tariffs, while Washington hones in on new trade deals with Canada, Mexico and the EU.
The price of crude is getting a boost from these concerns however, as production tightens on worries of a drop in Chinese manufacturing. US crude is up to 69.68 a barrel.
The Loonie is sliding to 76.94 cents US.