Canadian Financial Close: Markets rebound on stimulus talk

By MarketsFarm

WINNIPEG, August 16 (MarketsFarm) – The Canadian dollar gained almost a quarter of a cent at market close on Friday, as the North American stock markets rebounded.

The loonie finished the day at US$0.7527 or US$1=C$1.3286, which compares with Thursday’s close of US$0.7505 or C$1.3325.

News that the German government has considered a stimulus package through deficit spending gave a much needed boost to the stock indices.

The TSX/S&P Composite Index was up 137.26 points on Friday, to close at 16,149.79.

In the United States, the Dow Jones gained 306.62 points to close at 25,886.01. The NASDAQ rose 129.37 points to end the week at 7,895.99 and the S&P 500 was up 41.08 to finish at 2,888.68.

Benchmark oil prices were higher Friday as stimulus by central banks helped to alleviate fears about a global recession. That was offset by OPEC lowering its demand forecast based on slow growth in 2020.

Brent crude oil was up 40 cents to close at US$58.63 per barrel. West Texas Intermediate (WTI) crude oil was up 41 cents to close at US$54.88 per barrel.

As of Thursday, Western Canadian Select (WCS) crude oil was down 82 cents at US$43.17 per barrel. On August 15, the WCS/WTI price differential increased six cents at US$11.30 per barrel.

Gold was down US$6.30 on Friday to close at US$1,524.90 per ounce.

Canada’s agricultural sector fared as follows:

Buhler Industries unchanged at $ 2.77
Linamar Corp. up $ 1.04 at $ 39.42
Maple Leaf Foods up $ 0.25 at $ 33.01
Nutrien Ltd. up $ 1.07 at $ 66.11
Ritchie Bros Auctioneers Inc. up $ 0.58 at $ 51.59
Rocky Mountain Dealerships Inc. up $ 0.08 at $ 6.63
(All figures are in Canadian dollars.)

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