Oil below $30, loonie below 70 cents
The numbers made for uneasy reading Tuesday as the price of West Texas crude slipped below $30 and the Canadian dollar fell below 70 cents US. Both recovered to just above those markers later in the session.
Equities were also under pressure once more but the main index of the Toronto Stock Exchange closed slightly higher.
Wall Street closed higher too with the Nasdaq breaking its run of losses and the Dow’s gains in triple digits.
Globally, Asian markets closed lower with the exception of Shanghai while Europe’s indexes were broadly higher.
The S&P/TSX Composite Index closed up 54.65 (0.44 per cent)
The Dow Jones closed up 117.9 (0.72 per cent)
Oil is trending lower (Brent $31.14, WTI $30.79 at 4.15pm)
Gold is trending lower (1089.30 at 4.15pm)
The loonie is valued at U$0.7009
Morneau: Fixing Canada’s economy won’t be easy
Finance minister Bill Morneau says that fixing Canada’s flagging economy won’t be easy or quick but be remained confident that the current economic conditions will lead to a stronger future. He told the Montreal Council on Foreign Relations that it’s a “difficult period” but that long term growth can be put in place.
Canadian experts dismiss calls to “sell everything”
British-based bank RBS sent shockwaves around financial markets Tuesday when a client note suggested it was time to sell everything but high quality bonds. The bank said that oil prices could hit $16 and stocks to lose around 20 per cent. However, Canada’s Benjamin Tal of CIBC said selling was a flawed strategy and would lead to missed opportunities. Meanwhile BMO’s Doug Porter told the Financial Post that RBS’s comparisons with the start of the financial crisis in 2008 were overstated: “When you look at the backdrop in China, Europe or the U.S., it doesn’t match the rhetoric that’s displayed in this piece.”