Brexit hits banks, oil
The impact of Brexit was in sharp focus Monday with stocks and oil among the losers of the session.
Although most Asian markets managed to bounce back from the global sell-off seen Friday, European and North American indexes certainly did not.
The main TSX index closed down almost 1.5 per cent as bank stocks lost value as a result of the Brexit fallout. Energy firms also saw their stocks drop as a stronger US dollar impacted oil prices.
Wall Street also ended lower with the Nasdaq hardest hit.
European bourses plunged around 4 per cent with Germany’s DAX suffering a 3 per cent loss; the UK’s FTSE was down 2.55 per cent despite the finance minister George Osborne’s attempt to calm the market. The pound was lower once again though.
The S&P/TSX Composite Index closed down 202.1 (1.45 per cent)
The Dow Jones closed down 260.5 (1.50 per cent)
Oil is trending lower (Brent $47.59, WTI $46.70 at 4.50pm)
Gold is trending higher (1329.20 at 4.50pm)
The loonie is valued at U$0.7650
S&P cuts UK rating…and Saskatchewan
While global markets will have noticed a downgrade of the UK’s credit rating from Standard & Poor’s, the ratings agency also cut its outlook for Saskatchewan.
The province has lost its triple-A rating as a result of low prices of natural resources which is expected to continue to leave provincial budgets in deficit. The new rating is AA+
Mexican president says North America needs “economic integration”
Mexican president Enrique Pena Nieto is in Canada for talks with the prime minister and business leaders.
The president spoke Monday of common values shared among North American nations as he was welcomed by Governor-General David Johnston.
Mr. Nieto said: “Let us take stock of our affinity and agreement to bolster innovation and environmental sustainability and also to foster the economic integration of North America.”
As part of the talks between the president and Justin Trudeau, there will be discussion on how to tackle protectionism in the US.
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