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Petroleum industry

Canadian Stocks Fall Amid Stronger US Dollar and Lower Oil Prices

Strategic Insights

— 1 min read

The Canadian stock market declined due to the strengthening of the US dollar and a drop in oil prices. Among the affected stocks, Cenovus Energy Inc. and First Quantum Minerals Ltd. saw significant decreases, while Royal Bank of Canada rose. The Standard & Poor's/TSX Composite Index saw a slight increase, but the overall trend was downward. Experts attribute the decline to the strengthening US dollar and slower-than-forecast growth in Britain.

Key Takeaways:

  • 112 out of 211 stocks in the Standard & Poor's/TSX Composite Index fell, while 93 rose and six were unchanged.
  • Cenovus Energy Inc. declined 1.8% as crude futures erased most of their gains from the previous day.
  • First Quantum Minerals Ltd. decreased 3.9% as copper prices fell on concern that China's restrictions on bank lending will curb demand.
  • Royal Bank of Canada rose 1.3% as financial shares gained.
  • The S&P/TSX Composite Index climbed 6.68 points, or 0.1%, to 11,361.19.
  • The U.S. Conference Board's confidence index rose to 55.9 from 53.6 in December, surpassing the median forecast of economists.
  • The S&P/TSX soared 56% from March 9 to Dec. 2 as the US dollar dropped 16% against a basket of world currencies.
  • Oil futures, which have fallen 10% since reaching a 14-month high on Jan. 6, dropped 0.7% to $74.71 a barrel.

Statistics:

  • 112 stocks fell, 93 rose, and six were unchanged in the Standard & Poor's/TSX Composite Index.
  • Cenovus Energy Inc. declined by 1.8% after crude futures erased most of their gains from the previous day.
  • Copper prices fell 3.9% as China's restrictions on bank lending raised concerns about demand.
  • The S&P/TSX Composite Index climbed 6.68 points, or 0.1%, to 11,361.19.
  • The U.S. Conference Board's confidence index rose to 55.9 from 53.6 in December.
  • The S&P/TSX soared 56% from March 9 to Dec. 2 as the US dollar dropped 16% against a basket of world currencies.
  • Oil futures dropped 0.7% to $74.71 a barrel.

Sources:

  • Euclid Infotech Pvt. Ltd.
  • Bloomberg
  • Statistics Canada

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