MONEY IN BRIEF
Currencies
These are indicative wholesale rates for foreign currency provided by the Bank of Canada on Monday. Quotations in Canadian funds.
Australia dollar 0.9808
Brazil real 0.3522
China renminbi 0.2051
Euro 1.5337
Hong Kong dollar 0.1683
India rupee 0.01941
Indonesia rupiah 0.000095
Japan yen 0.01196
Malaysia ringgit 0.3304
Mexico peso 0.06393
N.Z. dollar 0.9164
Norway krone 0.1623
Peruvian new sol 0.4026
Russia rouble 0.02079
Saudi riyal 0.3523
Singapore dollar 0.9772
South Africa rand 0.09702
South Korean won 0.001195
Sweden krona 0.1497
Switzerland franc 1.3277
Taiwanese dollar 0.04377
Thailand baht 0.04040
Turkey lira 0.2797
U.K. pound 1.7491
U.S. dollar 1.3213
Vietnam dong 0.000058
Financial highlights
Highlights at the close Monday at world financial market trading. Stocks:
S&P/TSX Composite Index - 16,383.63, up 69.21 points Dow - 24,987.47, down 103.01 points
S&P 500 - 2,773.75, down 5.91 points
Nasdaq - 7,747.03, up 0.65 of a point
Currencies:
Cdn - 75.68 cents US, down 0.21 of a cent
Pound - C$1.7491, down 0.08 of a cent
Euro - C$1.5337, up 0.39 of a cent Euro - US$1.1608, down 0.02 of a cent
Oil futures:
US$65.69, up 84 cents (August contract)
Gold futures:
US$1,280.10 per oz., up $1.60 (August contract)
Canadian Fine Silver Handy and Harman:
$22.624 oz., down 14.1 cents $727.36 kg., down $4.47
The markets today
The energy sector helped Canada’s main stock index close higher Monday, while U.S. markets were flat to lower amid rising trade tensions between the U.S. and China.
Trade tensions between the U.S. and Canada have also escalated recently after U.S. President Donald Trump threatened to impose tariffs on auto imports.
The increased threat to cross-border trade added to pressure the loonie was already feeling after the U.S. Federal Reserve raised interest rates last week, said Candice Bangsund, vice president and portfolio manager at Fiera Capital Corp.
“We’re seeing the loonie is being weighed down by escalating trade tensions, which has arguably complicated the status of NAFTA negotiations.”
The Canadian dollar averaged 75.68 cents US Monday, down 0.21 of a US cent.
The drop in the loonie, which started last week at over 77 cents US, is part of the widespread impact trade uncertainty with the U.S. has caused, said Bangsund.
“The Canadian dollar, Canadian interest rate, even equity market have all been unfairly punished due to this overhanging uncertainty on NAFTA,” he said. “Our expectation is if we do get some sort of clarity on the NAFTA front, investors can look past that uncertainty towards the fundamentals, which actually do support a stronger Canadian dollar, higher stock prices, and higher interest rates in Canada.”
The S&P/TSX composite index closed up 69.21 points at 16,383.63 points Monday despite the trade dispute as the August crude contract closed up 84 cents at US$65.69 per barrel.
In New York, the Dow Jones industrial average closed down 103.01 points at 24,987.47. The S&P 500 index was down 5.91 points at 2,773.75 and the Nasdaq composite index was up 0.65 of a point at 7,747.03.
The market was risk-averse after Trump said Friday he would impose tariffs on Chinese goods, with China responding with planned tariffs on $34 billion worth of U.S. goods.