Thursday, April 17th6.3°C
21417
21086

Loonie lower amid grim European data

The Canadian dollar was slightly lower Wednesday amid relief that a clear-cut winner has emerged from Tuesday's U.S. presidential election. Barrack Obama won by a large margin in electoral college votes although the popular vote count was much closer.

The currency dipped 0.14 of a cent to 100.69 cents US after rising 0.5 of a cent on Tuesday as weak European data increased risk aversion to resource-based currencies such as the loonie.

The European Union on Wednesday downgraded its economic forecasts, saying it now expects the gross domestic product of the 27-country region to contract by 0.3 per cent on an annual basis this year, rather than remaining flat as it predicted in the spring.

It also said that the 17 countries that use the euro currency will see their GDP fall 0.4 per cent, against a previous expectation of a 0.3 per cent contraction.

And Germany's panel of independent economic advisers said that country's economy, which is Europe's biggest, will grow by only 0.8 per cent next year. The government last month lowered its own 2013 growth forecast to one per cent from 1.6 per cent.

Meanwhile, traders now wonder how Democrats and Republicans will come together to avoid automatic tax hikes and steep spending cuts set to click in at the end of the year. Investors worry the shock from this so-called fiscal cliff scenario would send the U.S. back into recession.

The Republicans kept control of the House of Representatives while the Democrats continue to have a majority in the Senate.

"The dead heat on the popular vote (based on current declarations) is hardly a sweeping mandate and is likely to leave the Republicans in no mood for compromise on tax and spending policy," said Adam Cole, Head of G10 FX Strategy at RBC Europe Limited.

"With the election outcome behind us, however, attention returns to Europe in the near-term."

Greece was also back in focus ahead of a crucial vote in its parliament later in the day that could determine whether the country stays in the eurozone.

The Canadian Press


Read more Business News

20260


Recent Trending




Today's Market
S&P TSX14446.52+142.60
S&P CDNX997.975.87
DJIA16424.85162.29
Nasdaq4086.225+52.064
S&P 5001862.31+19.33
CDN Dollar0.9079+0.0002
Gold1303.00-0.10
Oil103.79+0.03
Lumber327.80-1.00
Natural Gas4.56+0.03

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.22-0.05
Cantex0.045-0.005
Anavex Life Sciences0.375-0.005
Metalex Ventures0.0750.00
Russel Metals30.55+0.28
Copper Mountain Mining2.42+0.10
Colorado Resources0.2650.00
ReliaBrand Inc0.12-0.01
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.23-0.02

 
19691


20260

FEATURED Property
1552503660 Lequime Rd
3 bedrooms 3 baths
$489,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...


Valuation fears grip markets

The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...


Quick and nimble

Photo: ContributedFor many businesses this has been a tremendously difficult time since the 2008 crisis. Business fell off. Sales techniques that always worked, well… stopped working. Customers...

_



21641

21641


Member of BC Press Council


21202