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Economy

Canadian dollar weakens by most in four weeks as commodities slide

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Canadian dollar

The Canadian dollar weakened against its U.S. counterpart on Wednesday as commodity prices fell sharply, while domestic data showed inflation climbing in April at the fastest pace in a decade but at a rate less than in the United States.

The loonie was trading 0.6% lower at 1.2135 to the greenback, or 82.41 U.S. cents, its biggest decline since April 20. On Tuesday, it touched its strongest level since May 2015 at 1.2013.

Inflation in Canada rose to 3.4% in April from 2.2% in March, due mostly to the statistical comparison with last year when prices sank during pandemic shutdowns, data showed. It was the highest annual increase since May 2011.

“The numbers are within expectations, a little bit stronger, not like a big blowout we saw in the U.S.,” said Darcy Briggs, a portfolio manager at Franklin Templeton Canada. “I don’t expect much in the way of reaction from the Bank of Canada.”

Data last week showed U.S. CPI shot up 4.2% in the 12 months through April.

Wall Street and commodity prices have been on a tear in recent months but were pressured on Wednesday by fears that rising inflation could force the U.S. Federal Reserve to pare back its support soon.

A “number” of Fed officials appeared ready to begin considering changes to monetary policy based on continued rapid progress in the economic recovery, minutes of the central bank’s April meeting showed.

Copper fell 3.5%, while oil, one of Canada‘s main exports, settled 3.3% lower at $63.36 a barrel.

The Bank of Canada has expressed concern about the strong dollar hurting exports, but soaring demand for commodities and a looming rebound in consumer spending are seen limiting the impact, economists said.

Canadian bond yields rose across a steeper curve, tracking the move in U.S. Treasuries. The 10-year was up 2.6 basis points at 1.590%.

 

(Reporting by Fergal Smith; Editing by Barbara Lewis and Peter Cooney)

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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)

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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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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)

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