Crude price sinks, TSX falls

Times Colonist - - Business -

TORONTO — Canada’s largest stock in­dex nose-dived Tues­day while U.S. stocks slumped as the price of oil saw its big­gest sin­gle-day drop since Oc­to­ber.

The S&P/TSX com­pos­ite in­dex re­treated 113.13 points to 15,913.13, with the en­ergy sec­tor lead­ing the broad-based de­cline as the De­cem­ber crude con­tract fell US$1.06 to US$55.70 per bar­rel.

In New York, the Dow Jones in­dus­trial av­er­age was down 30.23 points to 23,409.47. The S&P 500 in­dex edged back 5.97 points to 2,578.87 and the Nas­daq com­pos­ite in­dex lost 19.73 points to 6,737.87.

“We’re see­ing con­tin­u­ing weak­ness in global mar­kets. We’ve seen that all the ma­jor mar­kets have kind of re­treated from the highs that were set ear­lier in the month,” said Todd Mat­tina, chief econ­o­mist and strate­gist at Macken­zie In­vest­ments.

“The de­cline in oil prices is re­ally weigh­ing on en­ergy sec­tors in global mar­kets, which of course is very im­por­tant for the Cana­dian mar­ket.”

Mat­tina said a dovish re­port on Tues­day from the In­ter­na­tional En­ergy Agency has played a role in soft­en­ing en­ergy prices. The re­port said that growth in U.S. oil out­puts is sup­posed to be very strong, with very rapid growth ex­pected be­tween now and 2025.

“We’ve seen a very im­pres­sive rally in oil prices re­cently which has been driven by hopes of con­tin­ued OPEC pro­duc­tion cuts as well as the un­cer­tainty around the po­lit­i­cal drama in Saudi Ara­bia,” Mat­tina said. “But today we’re see­ing a step back from that as there’s been a fore­cast of warmer than nor­mal weather as well as very ro­bust pro­duc­tion in the U.S. over the com­ing years.”

In cur­rency mar­kets, the Cana­dian dol­lar was trad­ing at 78.52 cents US, down 0.31 of a U.S. cent from Mon­day.

The De­cem­ber gold con­tract was up US$4.00 to US$1,282.90 an ounce. The De­cem­ber nat­u­ral gas con­tract gave back seven cents to US$3.10 per mmBTU and the De­cem­ber cop­per con­tract de­clined five cents to US$3.07 a pound.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.