Manulife Reinsurance Deal Seen Nudging Return on Equity Higher: Everything You Need to Know on Tuesday

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

●S&P/TSX 60 Index Standard Futures are trading at 1,332.30 ,up 0.30%.

●Bank of Canada sees QT ending in 2025

●TSX could 'disappear' without more domestic investment from Canadian pensions: Letko

●Gold holds near record high ahead of US Inflation data release

●Stocks to watch: Manulife, Enbridge

Today, the Canadian dollar is trading at 73.73 cents US, a slight increase from Monday.

The S&P/TSX 60 Index Standard Futures (SXF) are currently trading at 1,332.30, which is up 0.30% from the previous close.

An official from the Bank of Canada indicated that the process of quantitative tightening is anticipated to conclude by 2025. Afterward, the central bank will evaluate the possibility of acquiring assets across primary and secondary debt markets.

Speaking in Toronto, Deputy Governor Toni Gravelle reaffirmed the projection that the initiative would continue until the settlement balances attain a target range between $20 billion and $60 billion, down from the present figure of approximately $100 billion.

"The bottom line is the balance sheet normalization process is continuing as we laid out last year and we have tools to manage any temporary funding pressures that might come up along the way,” Gravelle said.

A seasoned executive in wealth management has expressed concerns that if Canada's major pension funds do not increase their investments within the country, institutions such as the Toronto Stock Exchange may eventually become obsolete.

Speaking to BNN Bloomberg, Peter Letko, co-founder and partner at Letko Brosseau, an investment management company, highlighted the negative effects on Canada's economic and financial stability due to the insufficient investment by Canadian pension funds in domestic markets.

"I don't think this is good for our economy. It's certainly not good for our financial markets,” he said in a Friday morning television interview.

Gold built on its upward trajectory from Monday as traders anticipate the upcoming U.S. inflation figures that could offer a clearer perspective on the timing of the Federal Reserve's interest rate reductions.

The forthcoming core personal consumption expenditures index, set for release on Good Friday, is predicted to indicate that inflation persisted at elevated levels in February. Such a scenario may obstruct the intentions of U.S. officials to carry out three rate decreases within the current year. Generally, gold, which yields no interest, profits from a scenario of reduced borrowing costs.

It also frees up C$800 million of capital for increased share buybacks. Mihelic says the transaction suggests an appetite from reinsurers for these exposures, and so could mean Manulife enters into additional U.S. long-term care reinsurance deals in the future. RBC has an outperform call and C$38 target on the shares, which were last at C$32.98.

Under the terms, the joint venture will be owned 50.6% by WhiteWater/I Squared, 30.4% by MPLX and 19.0% by Enbridge.

The joint venture will own 100% of the Whistler pipeline and the Rio Bravo pipelines, 70% of the ADCC pipeline and 50% of the Waha Gas Storage. Closing is expected in the second quarter.

Source: BNN Bloomberg, MT Newswire