Daily Wrap-Up: Oil down 5 per cent as supply fears jump

Daily Wrap-Up: Oil down 5 per cent as supply fears jump

Daily Wrap-Up: Oil down 5 per cent as supply fears jump Oil down 5 per cent as supply fears jump
Thursday was not the day to have investments in commodities with gold prices down more than 1.5 per cent and a 5 per cent slump for oil prices.

Gold was hit as the greenback rallied following the Fed’s latest meeting while oil prices are falling again as the rise in output from the US and others is wiping out the impact of supply cuts from OPEC. Those cuts may be extended later this month but there is no guarantee.

The materials and energy sectors of the main TSX were down sharply but all but consumer staples were lower. Financials continued to be pressured by mixed confidence in lenders with Home Capital shedding another 12 per cent from its share price.

Wall Street closed flat while European indexes were mixed and Asian markets were mostly lower.

The S&P/TSX Composite Index closed down 146.4 (0.94 per cent)
The Dow Jones closed down 6.43 (0.03 per cent)
Oil is trending lower (Brent $48.40, WTI $45,48 at 4.40pm)
Gold is trending lower (1229.20 at 4.40pm)
The loonie is valued at U$0.7266

Canada, Mexico united against “international environment” says Poloz
The governor of the Bank of Canada said Thursday that Canada and Mexico share a commitment to open trade and will overcome challenges as they have done before.

Speaking in Mexico, Stephen Poloz referred to the current issues regarding trade with the US, saying that the “uncertainty has real consequences for companies” and noting that they may not be keen to expand, especially as the global financial crisis is still in recent memory.

He called on policymakers not to reverse the boost to the economies of North America which have been driven by open trade.

“We know that with protectionism, everybody loses eventually, including the country that puts the policies in place,” Governor Poloz said. “And the uncertainty around this threat of increased protectionism is holding back growth.”

Record exports narrow Canada’s trade deficit
Canadian exports were up 3.8 per cent in March to a record $47 billion, narrowing the country’s merchandise trade deficit to $135 million, down from $1.1 billion in February.

Statistics Canada data shows energy products and consumer goods were the strongest exports. Imports grew 1.7 per cent to $47.1 billion, mainly unwrought gold.

Exports to the US were up 0.1 per cent to $34.4 billion while exports to other countries gained 15.3 per cent to $12.6 billion.

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