TSX lower on energy stocks; Oil prices down after China demand spike
Monday saw a fall for energy stocks on the Toronto Stock Exchange as oil prices shed overnight gains. Prices had increased on news that China was buying more oil and expected to continue to buy more despite its sluggish economy. Meanwhile Wall Street also saw equities fall as investors eyed bond yields and continued to weigh the jobs data from Friday with some believing the strong growth in American jobs could mean an earlier Fed interest rate hike, although slow wage growth may offset some of the gains. Asian markets reacted to Beijing’s latest interest rate cut with mostly gains, except Australia. European indexes were mixed as Greek debt continued to impact.
The S&P/TSX Composite Index closed down 17.38 (0.11 per cent)
The NYSE closed lower
Oil is trending lower (Brent $64.89, WTI $59.27 at 4.15pm)
Gold is trending lower
The loonie is valued at U$0.8259 (at 4.15pm)
Alberta should process more of its oil says new premier
The newly elected NDP premier of Alberta says that the oil industry should process more of the oil it produces before exporting it. In a television interview Rachel Notley said that lower oil prices help those higher up the supply chain and that Alberta needs to be higher up to benefit. One of the issues she has with the Keystone XL pipeline is that it will ship crude oil and “ship a lot of jobs south of here”.
BMO: Newfoundland and Labrador to slip into recession
Economists at BMO Nesbitt Burns forecast that Newfoundland and Labrador will slip into recession this year but Alberta will narrowly avoid one. Sal Guatieri wrote in a client note that BMO expects the national economy to slide by half of one per cent this year but that the oil producing provinces will be hardest hit. With NL and Alberta flat or lower Saskatchewan will avoid recession but slow to 1 per cent according to the report. With oil prices having rebounded from earlier lows there is some better news in the outlook; it’s expected that the national economy will grow by 2 per cent for the year with potentially stronger growth next year.
Lowes pick up 13 stores and warehouse from Target
Lowes is expanding its business with 13 stores and a distribution centre acquired from Target. The cost of the deal is around $151 million and Lowes says it will create 2000 jobs as a result of the new operations.