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Economy

C$ outshines G10 peers as oil posts multi-year high

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3 years ago

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The Canadian dollar edged up against its broadly stronger U.S. counterpart on Tuesday as oil prices climbed to their highest level since 2014 and investors bet that the Bank of Canada would raise interest rates as soon as next week.

The loonie was trading 0.1% higher at 1.2503 to the greenback, or 79.98 U.S. cents, after trading in a range of 1.2487 to 1.2563. It was the only G10 currency to gain ground against the greenback.

The move higher in crude prices “is supporting some oil proxies in the FX space,” said Bipan Rai, North America head of FX Strategy at CIBC Capital Markets.

Canada is a major producer of oil, which settled 1.9% higher at $85.43 a barrel as possible supply disruption after attacks in the Middle East added to an already tight supply outlook.

The U.S. dollar was bolstered by a jump in U.S. Treasury yields as traders prepared for the Federal Reserve to be more aggressive in tackling unabated inflation.

Canadian inflation data for December is due on Wednesday, which could offer clues on the Bank of Canada interest rate outlook.

Canadian restrictions to tackle COVID-19 will likely come at a cost of slower economic growth at the start of the year than in the United States, but that has not stopped investors from raising bets the BoC will hike interest rates at the Jan. 26 policy announcement.

Data from the overnight index swaps market shows the chances of a hike next week at nearly 70%.

Canadian housing starts fell 22% in December compared with the previous month as both multiple urban and single-detached urban starts decreased, data showed.

Canadian government bonds tracked the move in U.S. Treasuries. The 10-year yield climbed 7.6 basis points to 1.882%, its highest level since March 2019.

 

(Reporting by Fergal Smith; Editing by Nick Zieminski and Andrea Ricci)

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Economy

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

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September 13, 2024

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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)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports wholesale sales higher in July

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September 13, 2024

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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

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3 days ago

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September 12, 2024

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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)

The Canadian Press. All rights reserved.

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