Oil down 3 per cent, TSX lower
The latest Baker Hughes oil rig count data showed a rise for the second consecutive week, punishing oil prices which were already declining due to a stronger US dollar.
Energy and financial stocks led the losses on the TSX main index but the 10 main sectors were all lower.
Wall Street, European and Asian indexes all closed lower with the drop in oil prices fuelling caution and pushing many investors to the bond markets.
The S&P/TSX Composite Index closed down 202.5 (1.42 per cent)
The Dow Jones closed down 119.8 (0.67 per cent)
Oil is trending lower (Brent $50.47, WTI $48.98 at 4.25pm)
Gold is trending higher (1277.60 at 4.25pm)
The loonie is valued at U$0.7838
Unemployment hits 10-month low, GM jobs confirmed
Canada’s unemployment rate dropped 0.2 per cent to 6.9 per cent in May, its lowest rate since July 2015.
Employment was little changed though with a net increase of 14,000 (0.1 per cent). Full-time jobs rose 61,000 but there was a drop in part-time roles of 47,000. There was an increase in public sector roles while private sector roles were little changed.
Provincially, employment rose in Quebec, Ontario, Manitoba and Prince Edward Island, while it decreased in Alberta and Nova Scotia.
Figures for June will be given a lift following an announcement from GM confirming reports of hundreds of new engineering jobs in Ontario.
Softwood lumber talks set to fail, return to court
The talks between Canada and the US on exports of softwood lumber are likely to end in a return to the courts.
The Globe and Mail cites unnamed sources for the revelation that negotiations are making little progress with the US imposing large tariffs on the basis that Canadian softwood is subsidized.
A year-long moratorium on litigation runs out in October but there is a June 18 deadline for both sides to report back to Justin Trudeau and Barack Obama.