TSX falls as oil falls near $40
The price of West Texas Crude oil is near $40 Friday and benchmark Brent Crude is down to just above $43 as the global supply glut looks to intensify on weak demand and continued high output from OPEC.
Canada’s stock market saw energy and financials lead the decline of the main index once more.
US retail data disappointed Wall Street and returned a greater element of doubt to a December interest rate increase.
Elsewhere there was a similar story with most of the major indexes in Asia and Europe closing with losses.
The S&P/TSX Composite Index closed down 51.76 (0.39 per cent)
The Dow Jones closed down 203.0 (1.16 per cent)
Oil is trending lower (Brent $43.60, WTI $40.79 at 4.30pm)
Gold is trending higher (1081.50 at 4.30pm)
The loonie is valued at U$0.7514
Northern Gateway pipeline project over?
The Northern Gateway pipeline proposals could be stalled following a proposed ban on oil tankers off the North Coast of British Columbia. Prime Minister Justin Trudeau called for a moratorium Friday. Without the tankers the plan to carry bitumen from Alberta to Kitimat won’t work. However the deal faces a debate in House of Commons and will require legislation.
Housing still on target for soft landing says BoC deputy
Carolyn Wilkins said Friday that Canada’s housing market is still heading for a soft landing rather than anything more dramatic. The Bank of Canada’s Deputy Governor said that housing and household debt “are going to evolve in a constructive way.” The comments come following recent reports, including one from the OECD, suggesting serious concerns over the housing market.
Sears downsizing gathers pace
The downsizing of Sears Canada is picking up speed as the firm announced additional sale of real estate. The firm is selling its distribution centre in Vaughan, Ontario for around $100 million but will lease the property back from the new owners. Another of its distribution hubs has also been sold and will close in the next two months. Sears Canada had already announced some real estate transactions in September but these new arrangements are additional.