By MarketsFarm
WINNIPEG, Dec. 16 (MarketsFarm) – The Canadian dollar was stronger at market close on Monday, due to continuing optimism towards the unsigned Phase One trade deal between the United States and China. Meanwhile, the Canadian government’s forecast of higher deficits weighed on values.
The loonie finished the day at US$0.7609 or US$1=C$1.3142, which compares with Friday’s close of US$0.7586 or C$1.3183.
Canadian Minister of Finance Bill Morneau said the federal deficit for this year is now expected to be C$26.6 billion, far above the government’s pre-election projection of C$19.8 billion. Also next year’s deficit was forecast to be C$28.1 billion, up from C$19.7 billion. The revised figures accounted for the income tax breaks scheduled to come into effect on Jan. 1.
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Benchmark oil prices were slightly higher on Monday, due to Phase One optimism. However, gains were tempered by increased U.S. shale oil output to 9.14 million barrels per day, keeping the country as the world’s largest oil producer.
Brent crude oil rose 13 cents to close at US$65.35 per barrel, and West Texas Intermediate (WTI) was up 17 cents at US$60.24 per barrel. Western Canada Select gained 19 cents to close at US$38.18 per barrel.
The TSX/S&P Composite Index finished higher on Monday by 53.23 to close at 17,056.36 points, following the lead of the U.S. markets.
The optimism from the Phase One deal pushed U.S. stock markets to record highs today. The Dow Jones was up 100.51 at 28,235.89 points. The NASDAQ gained 79.35 to close at 8,814.23 points. The S&P 500 rose 22.65 to finish at 3,191.45 points
Gold was up 40 cents on Monday to close at US$1,476.74 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Industries unchanged at $ 3.60
Linamar Corp. up $ 0.38 at $ 48.06
Maple Leaf Foods up $ 0.05 at $ 25.56
Nutrien Ltd. up $ 0.95 at $ 63.76
Ritchie Bros Auctioneers Inc. dn $ 0.08 at $ 56.58
Rocky Mountain Dealerships Inc. up $ 0.01 at $ 6.31
(All figures are in Canadian dollars.)
