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Canadian Financial Close: Loonie remains steady despite trade news

By MarketsFarm

WINNIPEG, Dec. 3 (MarketsFarm) – The Canadian dollar continued to hold steady at market close on Tuesday, in light of the negative effect United States President Donald Trump’s comments had on the global markets.

The loonie finished the day at US$0.7518 or US$1=C$1.3302, which compares with Monday’s close of US$0.7520 or C$1.3297.

Trump stated that a trade deal with China will very likely wait until after the U.S. elections in November 2020. In the meantime, the president is set to hike tariffs on Chinese imports by another 15 per cent come Dec. 15. It’s widely expected that China will retaliate. The U.S./China trade war could plunge the global economy into recession the longer it continues, according to reports.

Benchmark oil prices were steady on Tuesday, as continued productions cuts by OPEC, Russia and their oil allies erased earlier losses from Trump’s comments.

Brent crude oil inched up 10 cents to close at US$61.02 per barrel, and West Texas Intermediate (WTI) was up 35 cents at US$56.31 per barrel.

However, Western Canadian Select crude, lost 90 cents close at US$34.42 per barrel.

Approximately 800 workers at Federated Co-operative Limited’s (FCL) refinery in Regina, Sask vote more than 97 per cent in favour of strike action, said Reuters. The move came after mediation talks between FCL and Unifor 594 broke down on Nov. 12. The union said it wants the workers’ pensions protected. The refinery is the third largest in Canada, processing 135,000 barrels of oil per day.

The TSX/S&P Composite Index was down 81.46 on Tuesday to finish at 16,900.01 points, as the North American markets lost between 0.5 to one per cent due to Trump’s comments.

In the U.S., the Dow Jones fell 280.23 points to close at 27,502.81, while the NASDAQ lost 47.35 to end the day at 8,520.64 and the S&P 500 slipped 20.67 to finish at 3,093.20.

Gold gained US$14.10 on Tuesday, closing at US$1,483.30 per ounce.

Canada’s agricultural sector fared as follows:

Buhler Industries unchanged at $ 3.60
Linamar Corp. dn $ 0.58 at $ 44.36
Maple Leaf Foods dn $ 0.13 at $ 24.03
Nutrien Ltd. dn $ 0.36 at $ 61.47
Ritchie Bros Auctioneers Inc. up $ 0.17 at $ 57.68
Rocky Mountain Dealerships Inc. dn $ 0.07 at $ 6.63
(All figures are in Canadian dollars.)

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