Daily Wrap-up: Gold price hits bullion miners, TSX lower

Daily Wrap-up: Gold price hits bullion miners, TSX lower

Daily Wrap-up: Gold price hits bullion miners, TSX lower Gold price hits bullion miners, TSX lower
The Toronto Stock Exchange closed lower Monday as gold bullion miners’ shares were hit by lower prices and oil prices continued to hit energy stocks. Commodity prices hit a 13-year low as the US dollar increased its value and the prospect approaches of better yields from investments when the Fed raises interest rates. Elsewhere Wall Street closed flat; Asian markets were mixed as commodities prices weighed; and Europe closed higher following a debt payment to the IMF by Greece.

The S&P/TSX Composite Index closed down 226.8 (1.55 per cent)
The NYSE closed flat (Dow up 6.88 / 0.04 per cent)
Oil is trending lower (Brent $56.52, WTI $49.94 at 4.10pm)
Gold is trending lower
The loonie is valued at U$0.7695 (at 4.10pm)
 
Oil to reach $100 a barrel…but not yet
With a barrel of West Texas now below $50 again it’s difficult to imagine a $100 price tag any time soon but one oil expert says prices will recover within the next five years. Gary Ross of PIRA Energy Group predicted last year’s tumble in prices and said in an interview Monday that the current lows are unsustainable and that there is not as much of a supply glut as reported. Ross says that with the Saudis pumping less and non-OPEC countries set to produce lower amounts there will be a stabilizing of oil prices next year as supply tightens.
 
Moody’s warning about Scotiabank’s South America deal
Scotiabank’s deal to buy the Panama and Costa Rica banking business of Citigroup has been deemed credit-negative by rating agency Moody’s. Although the expansion of the bank’s operations in South America spreads its risk across an expanded footprint and increased credit customers the Moody’s note warns: “Scotia Costa Rica and Scotia Panama will face challenging operating environments as asset quality faces negative pressure from lower economic growth, and the likelihood of higher interest rates in the U.S.”
 
Wholesale trade lower in May
Wholesale sales were lower in May according to new figures from Statistics Canada. The 1 per cent drop to $564.5 billion was the third consecutive month of decline.  Lower sales in four subsectors, which together represented 65 per cent of wholesale sales, accounted for the decline. Excluding the motor vehicle and parts subsector, wholesale sales declined 0.6 per cent. In volume terms, wholesale sales were down 1 per cent.