TSX, loonie fall despite oil recovery, New York markets mixed

TORONTO -- The price of oil recovered on Monday from the buffeting it took last week, but it wasn't enough to stave off losses for the Toronto stock market and the Canadian dollar on Monday.

See Full Article

The S&P/TSX composite index fell 94.46 points to end the day at 12,695.49, after dropping nearly 227 points on Friday.

In New York, markets were mixed. The Dow Jones average of 30 stocks rose 103.29 points to close at 17,368.50, the broader S&P 500 index rose 9.57 points to 2,021.94 and the Nasdaq added 18.76 points to 4,952.23.

Craig Fehr, Canadian market strategist at Edward Jones in St. Louis, said investors are taking a wait-and-see approach in advance of the U.S. Federal Reserve meeting later this week, at which the American central bank is expected to raise interest rates for the first time since the 2008 financial crisis.

"There's not a lot of investors that are wanting to place bets in one direction or another until we get confirmation of exactly what the Fed is going to do," he said.

Fehr said the central bank is widely expected to raise its benchmark interest rate a quarter of a point from the near-zero levels it has maintained over the past seven years.

"Clearly the U.S. economy and to some extent the global economy is nowhere near crisis mode anymore and it's time to start adjusting that," he said.

The question for investors now is not if the Fed will raise rates in its announcement on Thursday, he said, but how aggressive it will be with further rises in 2016 and beyond.

"That's the only real source of uncertainty so far," he said.

The January crude contract ended the day up 69 cents to US$36.31 a barrel. Oil has plummeted from a high of nearly US$108 a barrel in June 2014 and has fallen even further over the past two weeks as a worldwide supply glut has shown no signs of easing.

Fehr said demand had been sluggish for year coming out of the financial crisis, but the focus has switched to the supply side of the oil market as the United States has invested in domestic drilling and OPEC has kept production high in the face of plunging prices.

"There's a lot of supply, and while demand is looking a little bit better, it's not going to pick up overnight," he said.

The February gold contract fell $12.30 to settle at US$1,063.40 per troy ounce and the January contract for natural gas fell 9.6 cents to US$1.894 per 1,000 cubic feet.

The loonie ended the day up 0.02 of a cent to 72.79 cents US, after falling below 73 cents U.S. on Friday for the first time since mid-2004.



Advertisements

Latest Economic News

  • Chevron says it has won the latest round in an Ecuadorian legal battle

    Economic CTV News
    Oil giant Chevron Corp. says it has won a round in the Canadian courts in a complex legal battle with a group of Ecuadorian villagers who are trying to collect on a massive judgement they won in Ecuador's courts. Source
  • Liberals ask President Trump to approve Keystone XL pipeline

    Economic CTV News
    Canada’s natural resources minister says that he hopes the new U.S. administration will allow the Keystone XL pipeline quashed by Barack Obama to proceed, noting that all Canadian regulatory approvals are in place. Jim Carr spoke to CTV’s Power Play from Washington, D.C. Source
  • Apple depicts Qualcomm as a shady monopolist in US$1B lawsuit

    Economic CTV News
    SAN FRANCISCO -- Apple is suing mobile chip maker Qualcomm for $1 billion in a patent fight pitting the iPhone maker against one of its major suppliers. The 100-page complaint filed Friday in a San Diego federal court depicts Qualcomm as a greedy monopolist abusing its power in a key segment of the mobile chip market to extort royalties for iPhone innovations that have nothing to do with Qualcomm's technology. Source
  • Trump's 'America first' tone worries head of Canadian oil and gas industry group

    Economic CTV News
    Trump takes charge: Sworn in as 45th president of the U.S.A. Source
  • Obama administration urges Canada to reverse Super Bowl ad decision

    Economic CTV News
    OTTAWA - In one of its final communications with Canada, the outgoing Obama administration is engaging in pigskin politics: asking the Trudeau government to overturn a regulation affecting ads during the Super Bowl. The U.S. Source
  • Oil and stock prices higher as Donald Trump sworn in

    Economic CBC News
    Stock markets responded to the first day of the Trump Administration in a largely positive way, with the Dow Jones, the Nasdaq and the S&P 500 all higher on the day of his swearing in. The Dow Jones Industrial Average was up by nearly 100 points to 19,829 just minutes before the new president formally acceded to the position. Source
  • Stocks higher as Donald Trump lays out glimpse of future economic policies

    Economic CBC News
    Stock markets responded to the first day of the Trump Administration in a largely positive way, with the Dow Jones, the Nasdaq and the S&P 500 all higher on the day of his swearing in. The Dow Jones Industrial Average was up by nearly 100 points to 19,829 just minutes before the new president formally acceded to the position. Source
  • Stocks close higher as Donald Trump lays out glimpse of future economic policies

    Economic CBC News
    Stock markets responded to the first day of the Trump Administration in a largely positive way, with the Dow Jones, the Nasdaq and the S&P 500 all higher on the day of his swearing in. The Dow Jones Industrial Average was up by nearly 100 points to 19,829 just minutes before the new president formally acceded to the position. Source
  • Navdeep Bains defends open borders for global trade in Davos speech

    Economic CBC News
    Automakers on both sides of the border fear the potential negative effects of a Donald Trump presidency, Canada's economic development minister said Thursday as he met with international business and political leaders in Switzerland. Navdeep Bains said he's been having nervous conversations with concerned automakers, both at the recent auto show in Detroit and during his current visit to the World Economic Forum in Davos. Source
  • Will Trump end globalization? The doubt haunts Davos' elite

    Economic CTV News
    DAVOS, Switzerland -- It's been impossible to escape the shadow of Donald Trump at this year's gathering of the business elites at the World Economic Forum in Davos, Switzerland. Uncertainty over what Trump will do once he takes office Friday and whether his presidency will mark the end of globalization dominated discussions all week at this event, which more than any has become synonymous with international business. Source