Everything You Need to Know on Tuesday: Couche-Tard Buys Back Almost 8.7 Million Shares From CDPQ

Good morning mooers! Here are things you need to know about today's market:

● S&P/TSX 60 Index Standard Futures are trading at 1,368.10, down 0.15% from previous.

● BMO economist kavcic doubts BOC rate cut this week will significantly relieve housing market

● Trans Mountain prepares for bond issue as Canada eyes future sale of pipeline

● Oil prices stabilize amid U.S. political uncertainty and potential supply threats, notes ANZ Bank

● Couche-Tard buys back almost 8.7 million shares from CDPQ

Today, the Canadian dollar is trading at 72.67 cents US, a slight decrease from previous close.

According to Robert Kavcic, Senior Economist at BMO Economics, the anticipated rate cut by the Bank of Canada this week is unlikely to provide substantial relief for the Canadian housing market, reports MT Newswires.

Kavcic commented, "Echoing our previous statements before the initial rate cut, the bond market has preemptively adjusted to such policy moves, which is already factored into fixed mortgage rates. These rates are considerably lower than the variable rates which the BoC's decision will immediately affect.

"As of May, variable-rate mortgages accounted for less than 10% of new mortgage lending in Canada, with the majority of borrowers having shifted towards shorter term or five-year fixed mortgages.

"Similar to our observations earlier this summer, more significant assistance in terms of affordability—and thus a boost for the market—would require a larger adjustment in the pricing to reflect expectations of future rate cuts."

Trans Mountain Corp. is exploring a bond issue to refinance part of its $25.3 billion debt in preparation for a future sale by the Canadian government. While details of the debt deal are not finalized and could take months to emerge, the company, which has not previously issued debt or obtained a credit rating, is considering this move ahead of its potential divestment. Trans Mountain, owned by Canada Development Investment Corp., declined to comment. The government-backed pipeline, recently completed after a series of setbacks, is anticipated to be sold following its acquisition and expansion under Prime Minister Justin Trudeau's administration.

Oil prices moderated in the face of political uncertainties in the United States, though the possibility of supply interruptions helped mitigate declines, according to a Tuesday report from ANZ Bank.

Brent crude witnessed a mild recovery of 0.3% to US$82.66 per barrel, and West Texas Intermediate crude increased by 0.2% to US$78.56 per barrel early Tuesday, after slipping in the prior session. The markets are weighing the implications of a potential return to a Trump-led administration, the bank highlighted.

During his initial presidency, Trump advocated for maximized domestic oil production, which could strengthen demand. ANZ Bank pointed out that a reversal of Biden's energy transition policies under Trump could boost medium-term fossil fuel demand.

In addition, the threat of supply disruptions looms as wildfires in Alberta, Canada, approach within 10 kilometers of an area producing over 380,000 barrels of oil daily. A surge in purchases by China could further underpin prices, added the bank.

This buyback price represents a 3% discount on the shares' closing price as of July 22 on the Toronto Stock Exchange. Couche-Tard plans to finance the purchase with its available cash reserves.

The share repurchase is a component of CDPQ's routine portfolio rebalancing efforts. After the transaction is finalized, CDPQ will maintain ownership of 3.5% of Couche-Tard's total outstanding shares.