By Commodity News Service Canada
Winnipeg, December 31 – The Canadian dollar was higher Wednesday morning amid falling commodity prices.
At 8:35 CST Wednesday morning, the loonie was up 0.0010 of a cent to US$0.8623 or US$1 = C$1.1597. New data was released that seemed to confirm China’s economy was slowing. A survey by HSBC found manufacturing activity contracted in December to lead the monthly purchasing managers’ index below the 50 threshold. The new low of 49.6 spurred hopes by investors that the Chinese government will inject some stimulus into the country’s economy.
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The America Petroleum Institute said stockpiles of US crude oil rose by 760,000 barrels last week. That is in sharp contrast to earlier projections that called for a seasonal decline. The Department of Energy is expected to release more figures today.
Traders will also be watching for the release of the Chicago Purchasing Managers’ Index and jobless insurance claims in the US. Both readings should be available today.
On the commodity markets the February crude contract in New York fell $1.04 to US$53.08 a barrel. March copper dropped two cents to US$2.84 a pound while the February gold contract dipped 4.00 to US$1,196.40 an ounce.
At 8:35 CST Wednesday morning, the TSX was down 23.88 points to 14,640.04.
