The Canadian dollar weakened against its U.S. counterpart on Tuesday as a flight to quality driven by Russia’s invasion of Ukraine offset domestic data showing the economy expanded at a robust pace in the fourth quarter.
Global equity markets slumped and the safe-haven U.S. dollar climbed as the invasion and disruption caused by sanctions raised questions about the toll of the crisis on the global economy.
“The Ukraine-Russia conflict is weighing on global growth expectations and risk appetite, which has driven down central bank rate hike expectations across the board,” said Jay Zhao-Murray, market analyst at Monex Canada Inc.
Money markets see about an 80% chance that the Bank of Canada would hike interest rates on Wednesday and expect five hikes in total this year. [BOCWATCH]
That is less aggressive than before the invasion, when markets were pricing in at least six hikes in 2022. Markets have also scaled back estimates for rate increases by the Federal Reserve and the European Central Bank.
The price of oil, one of Canada’s major exports, settled 8% higher at $103.41 a barrel on the potential for severe disruption to supplies from Russia.
“While WTI (West Texas Intermediate) breaking the $100 per barrel threshold didn’t drive an appreciation in the Canadian dollar, it did manage to limit CAD losses relative to other G10 currencies,” Zhao-Murray said.
The loonie was down 0.5% at 1.2743 to the greenback, or 78.47 U.S. cents, after trading in a range of 1.2654 to 1.2749.
The Canadian economy grew 6.7% in the fourth quarter, while a preliminary estimate pointed to growth continuing in January.
Canadian government bond yields were lower across the curve, tracking the move in U.S. Treasuries. The 10-year touched its lowest level since Jan. 6 at 1.679% before rebounding slightly to 1.725%, down 12.4 basis points on the day.
(Reporting by Fergal Smith; Editing by Mark Heinrich and Richard Chang)
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.
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.
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.
