By Commodity News Service Canada
June 14 – The S&P/TSX Composite Index fell to its lowest level in six months as crude oil prices pressured energy stocks.
As well, a move by the U.S. Federal Reserve to raise its benchmark interest rate for the third time in six months was a drag on gold prices.
The S&P/TSX closed down 209.62 points Wednesday at 15,170.13, a decline of 1.36 per cent.
In New York, the Dow Jones Industrial average rose 46.09 points to 21,374.56, the S&P 500 lost 2.43 points and fell to 2,437.92 and the Nasdaq Composite fell 25.48 points to 6,194.89
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The Fed’s statements on interest rate hikes were likely the main driver behind tech sector weakness over the last two days. However, the sector remains up 18 per cent in 2017.
The Canadian loonie closed up slightly compared to the U.S. dollar to end the day at US$75.71 cents or 1.3209, a change of 0.17 of a cent from Tuesday’s close US75.54 cents or C$1.3238.
Canada’s five-year government bond has jumped by as much as 20 basis points, further raising speculation that higher mortgage loan rates were coming.
However, a spokesperson at the Bank of Canada told Reuters that there were no further comments to those issued by bank governor Stephen Poloz and deputy governor Carolyn Wilkins earlier this week. Those statements suggested a mortgage rate hike may be on the way.
AGT Food and Ingredients Inc. dropped sharply Wednesday, to $25.38. That’s 63 cents or 2.42 per cent, sending it below its 20-day moving average.
Canada’s agricultural sector performed as follows:
AGT Food and Ingredients—–dn $ 0.63 at $ 25.38
Agrium Incorporated———-dn $ 1.95 at $123.57
Buhler Industries————– $ 0.00 at $ 4.21
Maple Leaf Foods————-dn $ 0.58 at $ 33.05
Potash Corp. of Sask———dn $ 0.41 at $ 22.15
(All figures are in Canadian dollars.)
