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Highlights
- Oil prices continued to soar and as per the WTI, crude oil was trading above the US$ 80-mark at US$ 81.06 per barrel.
- Expanding its presence in Canada, the Silicon Valley Bank is launching a third Canadian office in Montreal.
- 136 countries agreed to a minimum tax rate of 15 per cent on big companies.
Futures tracking the S&P/TSX Composite Index remain unchanged on Tuesday morning (7:30 AM EST), October 12. Previously, the main Canadian index had a negligible surge of 0.0005 per cent and closed at 20,416.31 on October 8.
Meanwhile, oil prices continued to soar and crude oil WTI Futures was trading above the US$ 80-mark at US$ 81.06 per barrel at the time of writing.
Before the markets open, here are a few events that can influence the markets in Canada:
Global minimum tax deal
In a major development on Friday, October 8, 136 countries agreed to a minimum tax rate of 15 per cent on big companies so that they are unable to avoid taxation. The announcement came from the Organization for Economic Corporation and Development (OECD).
For the past few years, countries were demanding significant changes to the international tax rules that apply to multinational organizations. If fully implemented, large companies will have to pay more taxes in countries where they have many customers and fewer taxes in countries where there are only its employees and headquarters.
Also Read: GitLab IPO: Is the software company's GTLB stock a buy?
Countries like Pakistan, Sri Lanka, Nigeria and Kenya have not yet joined the agreement, however, countries responsible for 90 per cent of the global economy have supported the deal.
This deal is expected to influence the stocks of big companies.
Silicon Valley Bank expands in Canada
Expanding its presence in Canada, the Silicon Valley Bank is launching a third Canadian office in Montreal. According to the Canadian Venture Capital and Private Equity Association, Montreal ranks second in venture capital deals with C$ 953 million till June 2021.
Also Read: 3 Canadian growth stocks to buy for capital gains
The Silicon Valley Bank could compete with incumbents in Canada and grab market share by targeting Quebec's skyrocketing technology sector. The California-based bank gives money to technology and life-sciences startups.
Bombardier (TSX:BBD.B) could rise at market open
Eric Martel, Chief Executive Officer of Bombardier Inc. said on Monday, October 11, that he is seeing momentum across the board and the US private aviation flights have recovered to the pre-pandemic levels.
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The CEO has said that the pre-pandemic levels are helping Bombardier to build a backlog of orders and the low number of used jets available for sale is helping the company to shore up new-plane pricing.
Mr Martel said that the manufacturer of business jets is beginning to turn a profit on its new fleet of Global 7500, which is believed to be the largest aircraft built specifically for business clients.
Bottom line
The equities market responds both positively and negatively to world events and potential investors should study the possible impact of a particular event before investing in stocks.
