Economy

Canadian dollar retreats from three-year high as U.S. bond yields soar

Published

4 years ago

February 26, 2021

By Fergal Smith

TORONTO (Reuters) – The Canadian dollar weakened on Thursday by the most in four weeks against the greenback, as surging U.S. bond yields pressured global equity markets, with the loonie pulling back from a three-year high.

The loonie was trading 0.7% lower at 1.2596 to the greenback, or 79.39 U.S. cents, its biggest decline since Jan. 27. During the session, the loonie touched its strongest intraday level since February 2018 at 1.2468.

“The U.S. 10-year (yield) has just run away with it this afternoon and is placing substantial pressure on high-beta currencies,” such as the Canadian dollar, said Simon Harvey, senior FX market analyst for Monex Europe and Monex Canada.

High-beta currencies tend to be more sensitive to risk sentiment than the broader market. Canada runs a current account deficit and is a major exporter of commodities, including oil.

A jump in benchmark U.S. Treasury yields led a gauge of global equity markets to retreat as investors sold the high-flying tech stocks that fueled Wall Street’s rally to record highs and took precautions against the threat of inflation.

The price of oil, one of Canada‘s major exports, edged up to its highest close since 2019 as Texas refineries restarted production after last week’s freeze. U.S. crude oil futures settled 0.5% higher at $63.53 a barrel.

Canadian payroll employment rose by 44,200 in December after decreasing by 64,500 in November, Statistics Canada said.

Canadian government bond yields were higher across a steeper curve in sympathy with U.S. Treasuries. The 10-year touched its highest level since January last year at 1.486% before dipping to 1.457%, up 14.2 basis points on the day.

(Reporting by Fergal Smith; Editing by Kirsten Donovan)

Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

2 days ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

2 days ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

3 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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