WINNIPEG, August 14 (MarketsFarm) – The Canadian dollar was weaker at market close on Wednesday, as the major North American stock markets tumbled, taking crude oil prices with them.
The loonie finished the day at US$0.7513 or US$1=C$1.3311, which compares with Tuesday’s close of US$0.7555 or C$1.3236.
A troika of elements combined earlier today to drive down the markets that stoked fears of a global recession: the lowest growth in China’s economy in 17 years, the German economy shrunk in the second quarter, while short, and long-term United States Treasury yields inverted for the first time since 2007. The latter was said to be a strong indicator of a coming recession, according to reports. A major contributing factor to the global situation was the ongoing U.S./China trade war.
The TSX/S&P Composite Index dropped 304.90 points on Wednesday, to close at 16,045.94. Meanwhile, the major U.S. stock indices lost 2.7 to 2.9 per cent of their values, as the Dow Jones plummeted 733.31 points to 25,546.60. The NASDAQ skidded 230.36 points to end the day at 7,786.00 and the S&P 500 fell 79.80 to finish at 2,846.52 points.
Benchmark oil prices stumbled Wednesday over the doom and gloom of a possible global recession, nearly wiping out yesterday’s gains. Brent crude oil fell US$2.05 to close at US$59.25 per barrel. West Texas Intermediate (WTI) crude oil lost US$2.04 to close at US$55.06 per barrel.
As of Tuesday, Western Canadian Select (WCS) crude oil gained US$1.99 rising to US$46.04 per barrel. On August 13, the WCS/WTI price differential increased 18 cents at US$11.06 per barrel.
As so often the case, gold was up in the face of economic turmoil. Gold gained US$12.30 on Wednesday to close at US$1,526.40 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Industries unchanged at $ 2.80
Linamar Corp. dn $ 1.04 at $ 38.44
Maple Leaf Foods dn $ 0.67 at $ 32.59
Nutrien Ltd. dn $ 1.34 at $ 65.10
Ritchie Bros Auctioneers Inc. up $ 0.24 at $ 50.94
(All figures are in Canadian dollars.)