By Marc Jones LONDON (Reuters) - Risk appetite flickered back to life in financial markets on Tuesday with the dollar and European and Japanese shares rising while safe-haven bonds, the yen and gold all took a step back. The dollar rose to its highest since January against the yen and the euro slipped to a one-year low after another drop in euro zone producer prices heightened speculation about what the ECB will do when it meets on Thursday. Ukraine said 15 of its soldiers had been killed in the past 24 hours in fighting with pro-Russian separatists backed by Russian troops, while Europe's next foreign policy chief said the bloc's leaders would decide on a package of new sanctions against Russia by Friday. "We need to respond in the strongest possible way," Italy's Frederica Mogherini told reporters following a presentation to EU lawmakers in the European Parliament.
The pace of growth in the Canadian manufacturing sector edged up in August to a nine-month high, helped by modest improvement in new orders and employment, data showed on Tuesday. The RBC Canadian Manufacturing Purchasing Managers' index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 54.8 last month from 54.3 in July. "The momentum in Canada's manufacturing sector is clearly being sustained," said Craig Wright, chief economist at RBC. "We expect that Canadian manufacturers will continue to directly benefit from the strengthening U.S.
Goldman Sachs cut its price target on Bombardier Inc and reiterated a "sell" rating on shares of the train and plane maker on Tuesday, warning it expected the CSeries aircraft's entry into service to be delayed again. Goldman's price cut came just days after a Swedish carrier backed out as the first customer to start commercial flights with its new CSeries jet. Malmo Aviation, owned by Sweden's Braathens Aviation, was slated to be the first CSeries customer to take delivery of the new jet in the second half of 2015, but the airline said on Friday that will no longer be the case. "We believe the CSeries will negatively impact Bombardier's financial results and create negative catalysts for the next several years," Goldman analyst Noah Poponak said in a note to clients.
Russian military forces have been spotted in both major rebel-held cities in eastern Ukraine, an official said Tuesday, prompting Ukraine to declare it now has to fight the Russian army, not just the separatists. The statement on the Russians by Col. Andriy Lysenko, a spokesman for Ukraine's National Security Council, came after the country's defence minister said Ukraine's armed forces are expanding their strategy from just fighting separatists to facing the Russian army in a war that could cost "tens of thousands" of lives. In Moscow, a Kremlin aide sharply criticized EU Commission President Jose Manuel Barroso for breaching confidentiality when he quoted Russian President Vladimir Putin as saying that Moscow could take over Kyiv in two weeks if it wished.
Dollar General Corp raised its bid for Family Dollar Stores Inc to $80 per share, or $9.1 billion, and warned it may turn hostile and appeal directly to shareholders if the new offer was rejected. Family Dollar opted instead for an $8.5 billion cash-and-stock bid from Dollar Tree Inc . Family Dollar's shares were up almost 1 percent at $80.52 in premarket trading on Tuesday, above Dollar General's offer, suggesting some investors held hopes of higher offers. Shares of Dollar General, which increased its all-cash offer by 2 percent, were up 2.3 percent.
Singer Chris Brown is expected to appear in a District of Columbia court for what would be a third attempt at a plea deal to resolve an assault case. According to court filings, Brown is scheduled to appear in D.C. Superior Court on Tuesday at 9 a.m. A hearing originally scheduled for Friday was postponed. Attorney spokesman Bill Miller declined to comment on the case. In January and again in June, Brown rejected plea deals on a misdemeanour assault charge in an October 2013 fight outside a Washington hotel.
Members of a P.E.I. family are in Moncton to begin taking apart the indoor amusement park, Crystal Palace. Crystal Palace closed permanently Monday. The operators of the mall containing the park, Cadillac Fairview, are shutting it down in favour of a new Bass Pro Shop.
Thousands of new students moved in to residences this weekend for the start of the academic year at Ottawa's universities and colleges, but a shortfall of beds available means many students start the year struggling to find off-campus accommodation. CarletonÂ University student Sarah Dorey saidÂ her experience hunting for an apartment has beenÂ frustrating. "Well I looked through the Carleton boards;Â my roommate who goes to Ottawa U looked through the boards there.
A drop in the highly volatile energy prices depressed euro zone producer prices in July as expected, underlining disinflationary pressures in the single currency area ahead of the European Central Bank's monetary policy meeting on Thursday. Producer prices are an early indication of price trends. The ECB meets on Thursday, facing a dilemma how to respond to vanishing inflation in the 9.6 trillion euro economy whose recovery unexpectedly stalled in the second quarter, only two months after an interest rate cut in June. Producer prices in July, when compared with the same period last year, rose only in three euro zone countries - Estonia, Ireland and Latvia and were flat in the twice bailed-out Greece.