Financials, commodities drag TSX lower
Weak stocks in the financial and commodity sectors meant another day of losses for the Toronto Stock Exchange’s main index but the close was fairly flat. Wall Street was also ended the session lower as tech shares, led by Apple, fell on weaker-than-hoped results. Asian markets were also down following Wall Street’s lead in the previous session with only Shanghai managing to close higher. European indexes continued the trend.
The S&P/TSX Composite Index closed down 69.12 (0.48 per cent)
The NYSE closed lower (Dow down 68.25 / 0.38 per cent)
Oil is trending lower (Brent $55.97, WTI $49.13 at 4.20pm)
Gold is trending lower
The loonie is valued at U$0.7669 (at 4.20pm)
Loonie hits 10-year low
The Canadian dollar is at its lowest level since 2004. The currency closed at 76.70 Wednesday having been in a downward trend since the oil prices started to fall a year ago. With oil now down below $50 and interest rates adding pressure to the loonie there is concern that it will continue to fall.
Federal government heading for a deficit says PBO
Despite continued reassurances that the federal government will end the financial year with a surplus it doesn’t look that way to the Parliamentary Budget Officer. Following the Bank of Canada’s assessment of the economy last week the PBO now believes that Ottawa will have a deficit even if it uses its contingency fund. The PBO outlook is for a $1 billion shortfall in the current financial year before achieving a surplus of $600 million in 2016-17 and $2.2 million the year after.
Bombardier shares under pressure
Shares in Bombardier were hit Wednesday as a manufacturer of aircraft interiors in Florida said the market for business jets was being impacted by the oil industry downturn. Bombardier shares fell almost 20 per cent before recovering to a 6.7 per cent loss by early afternoon. Investors are concerned that the Montreal company is facing some tough conditions in the aerospace market.