Markets tumble as oil plummets almost 7 per cent
Stock markets were in turmoil Wednesday as oil prices fell sharply, with US crude plummeting almost 7 per cent to end the session below $27!
The Canadian dollar fell before recovering some ground; it could have been worsened had the BoC opted for a rate cut. The cut didn’t come but some analysts are still expecting at least one this year.
Stock markets plunged with Asian markets closing lower; Hong Kong and Tokyo fell more than 3 per cent. That was followed by similar drops in Europe with Paris and London among the biggest losers.
Toronto and Wall Street closed lower but the losses were less severe. The main index of the TSX saw every sector fall.
The S&P/TSX Composite Index closed down 159.1 (1.33 per cent)
The Dow Jones close down 249.2 (1.56 per cent)
Oil is trending lower (Brent $28.22, WTI $26.76 at 4.10pm)
Gold is trending higher (1101.40 at 4.10pm)
The loonie is valued at U$0.6888
Trudeau: Canada is not about resources but resourcefulness
The Prime Minister spoke at the World Economic Summit in Davos, Switzerland Wednesday and took the opportunity to tell the world that Canada is not all about resources but about resourcefulness. Justin Trudeau said that although natural resources continue to be important to the economy but there is more that Canada offers. Calgary Mayor Naheed Nenshi, also in Davos, said that he could not see a time when energy is not Canada’s biggest export and called for work to be done on market access.
Wholesale sales, manufacturing up
Statistics Canada released its latest data on wholesale sales and manufacturing Wednesday. Wholesale sales rose for the first time in five months, up 1.8 per cent to $55.9 billion in November. Sales were higher in four of seven subsectors, led by motor vehicle and parts. Excluding this subsector, wholesale sales were up 1.2 per cent in November. In volume terms, wholesale sales increased 1.6 per cent in November.
Manufacturing sales increased 1.0 per cent to $50.8 billion in November, led by higher motor vehicle sales in Ontario. These gains were partially offset by declines in sales of other transportation equipment, primary metals and petroleum and coal products. In constant dollar terms, sales were up 1.0 per cent, indicating that a higher volume of manufactured goods was sold.