Canadian Financial Close: Canada, Mexico get U.S. to remove tariffs

By MarketsFarm

WINNIPEG, May 17 (MarketsFarm) – The Canadian dollar was down at market close on Friday, despite Canada and Mexico having reached a deal with the United States to remove steel and aluminum tariffs.

The dollar finished Friday at US$0.7425 or US$1=C$1.3468, which compares Thursday’s close of US$0.7441 or C$1.3439.

As part of the agreement Canada and Mexico made with the U.S. on Friday regarding tariffs of 25 per cent on steel and 10 per cent on aluminum, the U.S. is required to eliminate both in 48 hours. That deal has paved the way for the three countries begin their respective processes to ratify the U.S.-Mexico-Canada Agreement, also known as ‘the new NAFTA.’

Benchmark oil prices were down on Friday, with fear playing both sides of prices. Weighing on values was the fear of the United States/China trade war heating up yet again. Providing support was fears of already heightened tensions in the Middle East increasing further.

Brent crude oil was down 54 cents to close at US$72.08 per barrel on Friday. West Texas Intermediate (WTI) crude oil slipped 14 cents to close at US$63.73 per barrel. As of yesterday, the price differential between WTI and Western Canadian Select crude oil narrowed by 75 cents at US$12.81 per barrel.

The TSX/S&P Composite Index lost 42.11 points on Friday to finish at 16,401.75 as energy stocks dipped.

Gold lost US$8.40 on Friday to close at US$1,277.80 per ounce.

Canada’s agricultural sector fared as follows:

AGT Food and Ingredients unchanged at $ 17.99
Buhler Industries unchanged at $ 3.61
Linamar Corp. up $ 0.05 at $ 45.37
Maple Leaf Foods up $ 0.36 at $ 32.54
Nutrien Ltd. dn $ 0.88 at $ 66.50
Ritchie Bros Auctioneers Inc. dn $ 0.03 at $ 44.97
Rocky Mountain Dealerships Inc. dn $ 0.29 at $ 8.70
(All figures are in Canadian dollars.)

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