The TSX composite was higher, rising 7.15 points to 12,938.61 in mid-morning trading on Wednesday. The Dow was up 181.77 to 15,349.78, while NASDAQ climbed 42.57 to 3,836.77.
After the bell on October 15,
Angle Energy Inc. (
TSX: T.NGL,
Stock Forum) announced a business combination with
Bellatrix Exploration Ltd. (
TSX: T.BXE,
Stock Forum), whereby Bellatrix has agreed to acquire all of the issued and outstanding common shares of Angle and all of Angle's issued and outstanding 5.75% convertible unsecured subordinated debentures with a maturity date of Jan. 31, 2016. Angle rose 19.6% to 3.72 a share in mid-morning trading.
Stocks were up as lawmakers rushed to lock up an agreement on raising the debt limit before tomorrow’s deadline.
Republican Senator Kelly Ayotte of New Hampshire said she understands Senate leaders have reached an agreement to avoid a Treasury default and reopen the government after a 16-day partial shutdown.
She made her comments as she walked into a meeting of Senate Republicans in leader Mitch McConnell's office.
``People recognize this issue but people think it will get resolved,'' said Garey Aitken, chief investment officer at Franklin Bissett Investment Management.
``You look really smart if this becomes protracted problem but in all likelihood, at the 11th hour, it gets resolved. And I would expect we see a big equity rally following that.''
With no deal, the U.S. would exhaust its borrowing authority tomorrow and the government may start missing payments at some point between Oct. 22 and Oct. 31, according to the Congressional Budget Office.
Fitch Ratings put the world’s biggest economy on watch for a possible credit downgrade yesterday, citing lawmakers’ inability to agree.
The price of gold dropped US$9.31 to US$1,273.10 an ounce, while silver slipped US$0.14 to U$21.22 an ounce.