Friday, October 24th0.5°C
23888
22501

Canadian dollar advances, commodities rise in wake of strong Chinese trade data

TORONTO - The Canadian dollar closed higher Wednesday as commodity prices found lift in encouraging trade data from China.

The loonie was up 0.16 of a cent to 90.93 cents US as markets also digested Tuesday's federal budget. Finance Minister Jim Flaherty delivered a budget close to balance, with a $2.9-billion deficit for 2014-15 and a $3-billion contingency fund.

Data showed that China’s trade growth accelerated in January as imports rose 10 per cent to US$107.2 billion, up from December's 8.3 per cent growth. Exports rose 10.6 per cent to $126.7 billion, more than double the previous month’s 4.3 per cent expansion and the trade surplus widened to $31.9 billion.

All three numbers beat expectations and raised some doubts among economists.

"The strong export numbers have prompted renewed concerns about false invoicing, as trade partners didn't show similar strength in their data," observed BMO Capital Markets senior economist Benjamin Reitzes.

However, he also noted that the Lunar New Year holiday "can seriously distort the data."

"So we should probably wait for next month's numbers before pointing any fingers and making any judgments on how this report influences our growth outlook."

Still the report helped alleviate worries about the world's second-biggest economy. Markets had sold off early last week after other data showed manufacturing expanded at a much slower than expected pace at the beginning of the year.

Commodity prices moved higher as March crude on the New York Mercantile Exchange gained 43 cents to US$100.37 a barrel.

March copper rose four cents to US$3.26 a pound while April gold ticked $5.20 higher to US$1,295 an ounce.

There was also relief on markets after the U.S. Congress voted Tuesday night to extend the debt ceiling without any spending conditions. Republican legislators allowed a so-called clean bill, unlike other times in the past when the party insisted that any increase be matched by spending cuts.

The Canadian Press


Read more Business News

23015


Recent Trending




Today's Market
S&P TSX14486.83+174.76
S&P CDNX808.600.60
DJIA16677.90216.58
Nasdaq4452.792+69.945
S&P 5001950.82+23.71
CDN Dollar0.8922+0.0018
Gold1233.00+3.90
Oil81.14-0.61
Lumber334.10+4.50
Natural Gas3.581-0.041

 
Okanagan Companies
Pacific Safety0.11-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.17+0.02
Cantex0.0550.00
Anavex Life Sciences0.1980.00
Metalex Ventures0.04-0.01
Russel Metals33.16+0.63
Copper Mountain Mining2.08-0.02
Colorado Resources0.14-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.41+0.005

 





FEATURED Property
20974062722 Dubbin Road
3 bedrooms 4 baths
$1,995,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


23741