Gold drags TSX to 2-week low
The main TSX index was impacted by gold prices falling more than 3 per cent Tuesday as the greenback bounced following stronger US manufacturing data; fuelling talk of a Fed interest rate rise.
Nine of the ten sectors of the S&P/TSX Composite Index ended the session lower with materials down more than 6 per cent and financials off by almost 1.5 per cent. Energy also dragged on lower oil prices while IT was the only sector to close higher.
Wall Street also closed lower while European and Asian indexes were generally higher.
The S&P/TSX Composite Index closed down 168.1 (1.41 per cent)
The Dow Jones closed down 85.40 (0.47 per cent)
Oil is trending lower (Brent $50.83, WTI $48.63 at 4.35pm)
Gold is trending lower (1271.60 at 4.35pm)
The loonie is valued at U$0.7577
Canadian oil industry to break record, but it’s not good
The Conference Board of Canada says that the country’s oil industry is set to post a $10 billion loss for 2016, its first two-year run of losses ever. The think tank says that it will be the second quarter of 2017 that the industry will break even having been negative since the end of 2014.
The industry’s profit margin will be a record-breaking negative 19 per cent according to the Conference Board’s report. However, the outlook for next year comes with a caveat that stock levels and the global economy could stymie the bounceback.
Plunge for Vancouver real estate following new tax
The 15 per cent tax on foreign buyers of homes in Vancouver has hit sales by almost 33 per cent year-over-year.
September’s sales of 2,253 slumped just 2 months after the new tax was introduced and the Real Estate Board of Greater Vancouver’s chairman Dan Morrison said that there is real uncertainty in the market.
Prices eased 0.1 per cent compared to August but were 28.9 per cent higher than September 2015.