Goldman Sachs took the energy out of oil prices
Energy stocks slipped Tuesday as the recent rally in oil prices - which had analysts talking about a $50 barrel – slipped back. The decline was ignited by Goldman Sachs which warned that “only a real physical deficit can create a sustainable rally which is still months away should the behavioural shifts created by the low prices in January and February remain in place.”
Weak data had already led to a dip in sentiment as investors weighed weakened demand with exports and imports falling in China. Asian markets closed mostly lower while European indexes also declined along with Wall Street.
The S&P/TSX Composite Index closed down 72.55 (0.54 per cent)
The Dow Jones closed down 110.2 (0.65 per cent)
Oil is trending lower (Brent $39.48, WTI $36.29 at 4.15pm)
Gold is trending lower (1262.50 at 4.15pm)
The loonie is valued at U$0.7456
TD to launch ETFs
Exchange-traded funds are to be launched by TD Bank, Mackenzie Investments and Sphere Investment Management. TD’s offering will be 6 new ETFs, the Financial Post reports, which will include an international Canadian-dollar hedged equity fund. It will see a return to the market for TD after a decade. Meanwhile Mackenzie will launch 4 ETFs and Sphere also plans to introduce new products.
Canadian auto-debt is a risk says FCAC
The Federal Consumer Agency of Canada is warning of the risk of Canadians buying cars they cannot afford. The watchdog’s report Tuesday highlights an “auto-debt treadmill” with consumers opting for low payments but long terms, resulting in a high overall interest; and those high-risk borrowers who are saddled with higher interest rates. The FCAC warned that the risk is not just to consumers but to the wider economy.
Building permits drop 10 per cent
Statistics Canada data shows that municipalities issued building permits worth $6.4 billion in January, a decline of 9.8 per cent from the previous month. This decline, which erased a 7.7 per cent increase in December, was largely due to lower construction intentions for multi-family dwellings in British Columbia and Ontario and, to a lesser extent, institutional buildings in Quebec and Alberta. The value of residential building permits fell 12.5 per cent.