Kuwait oil strike boosts TSX, loonie
Just when we thought oil was on one of its downward trajectories followed the failed Doha talks, along comes a strike of Kuwait’s oil workers and a drastic slump in the country’s output. It’s allowed oil prices to rebound during Tuesday’s session with a positive effect on equities and the loonie.
The TSX advanced as miners and commodities led the gains and the main index closed more than 1 per cent higher. The loonie was up to its highest level since last summer.
Wall Street also saw gains for the Dow and S&P but tech stocks hit the Nasdaq which closed lower.
Asian and European markets closed higher on oil prices and regional factors.
The S&P/TSX Composite Index closed up 147.5 (1.07 per cent)
The Dow Jones closed up 49.44 (0.27 per cent)
Oil is trending higher (Brent $43.99, WTI $41.03 at 4.20pm)
Gold is trending higher (1252.40 at 4.20pm)
The loonie is valued at U$0.7900
Inflation target could change said Poloz
The governor of the Bank of Canada said Tuesday that inflation targets are still a “live issue.” Stephen Poloz testified to a government finance committee that the current target of 2 per cent was working well but that the bank is constantly reviewing the targets along with interest rates to ensure financial stability. Mr Poloz said that there would be more solid discussions with the federal finance department within the next two months.
Canada’s oilsands could fail to recover based on report
A new report on the oil sector makes uneasy reading for Canada’s oilsands. UK-based Cambridge Econometrics estimates that the price of oil could be around the $83 to $87 range from 2030 to 2050 if new targets to cut carbon emissions are adopted by countries. With Canadian oil producers only just breaking even at $80 the range would not allow much room for profits and could mean that investments do not cover their costs.