US election fears dominate markets
World markets weighed the possibility of Donald Trump winning the US presidential election Wednesday. And they don’t like it.
Oil prices were also lower as hopes of an OPEC production cap continue to fade. Gold and silver fared better.
The main TSX index slumped more than 1 per cent with healthcare and energy worst hit but all ten of its component sectors fell.
Meanwhile, stocks on Wall Street closed the session lower following an expected decision by the Fed to hold interest rates steady. December is still on the table if economic conditions are favourable.
Europe and Asia were also mostly lower with few outliers.
The S&P/TSX Composite Index closed down 183.2 (1.24 per cent)
The Dow Jones closed down 77.46 (0.43 per cent)
Oil is trending lower (Brent $47.08, WTI $45.45 at 4.45pm)
Gold is trending higher (1298.20 at 4.45pm)
The loonie is valued at U$0.7463
Warning for Canada’s oil producers
Oil prices could return to near $40 a barrel if the OPEC producers cannot agree to cap output, Goldman Sachs has warned.
Prices are already under pressure, having been above $50 recently, as investors lose confidence in a deal which could offer support to the volatile market.
Goldman Sachs’ report warns: “Even if the fear of such low prices leads OPEC to deliver an agreement on November 30, we reiterate our view that the odds of it succeeding are low.”
Blockchain will cut cost and time for traders
Securities trading will become more efficient as large financial institutions adopt blockchain technology.
That’s according to the CEO of New York’s Digital Asset Holdings, Blythe Masters, who told an OSC conference in Toronto Wednesday that the post-trading processes are often slow and the costs have increased to a point where margins are low.
Blockchain should simplify the processes over the next decade to provide a more efficient system.