Canadian Financial Close: Loonie rises after fiscal update

By MarketsFarm

WINNIPEG, July 8 (MarketsFarm) – The Canadian dollar jumped a quarter of a cent on Wednesday, following the fiscal update from Canadian Minister of Finance Bill Morneau.

The loonie finished the day at US$0.7387 or US$1=C$1.3538, compared to Tuesday when it closed at US$0.7362 or US$1=C$1.3583.
Morneau forecast the country’s deficit will balloon to C$343 billion, far more than the C$250 billion economic analysts predicted. Federal aid to businesses and individuals, due to the COVID-19 pandemic along with a deep recession, saw federal spending reach levels unseen since the Second World War.

The TSX Composite Index was up 33.69 points on Wednesday, to close at 15,629.19.

Benchmark crude oil prices were slightly higher on Wednesday, getting support from a bounce in the stock markets. However, an oil glut in the United States kept a lid on further gains.

Brent crude oil increased 18 cents at US$43.26 per barrel. West Texas Intermediate (WTI) crude oil rose 24 cents at US$40.86 per barrel. Western Canadian Select (WCS) was up 17 cents at US$33.25 per barrel.

Gold gained US$14.13 at US$1,808.99 per ounce.

Canada’s agricultural sector fared as follows:

Buhler Industries unchanged at $ 2.47
Linamar Corp. dn $ 0.37 at $ 37.19
Maple Leaf Foods dn $ 0.43 at $ 28.12
Nutrien Ltd. dn $ 1.41 at $ 42.93
Ritchie Bros Auctioneers Inc. dn $ 0.05 at $ 55.74
Rocky Mountain Dealerships Inc. dn $ 0.02 at $ 4.23
(All figures are in Canadian dollars.)

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