Monday, December 22nd0.2°C
24563

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




Recent Trending




Today's Market
S&P TSX14447.19-21.069
S&P CDNX672.16-4.38
DJIA17901.0096.20
Nasdaq4765.684+0.304
S&P 5002070.47-0.18
CDN Dollar0.8589-0.0028
Gold1189.40-6.50
Oil56.50+2.39
Lumber337.70-0.30
Natural Gas3.169-0.295

 
Okanagan Companies
Pacific Safety0.125+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.21-0.04
Cantex0.03-0.005
Anavex Life Sciences0.1712-0.0014
Metalex Ventures0.05-0.005
Russel Metals25.17-0.41
Copper Mountain Mining1.57+0.02
Colorado Resources0.11-0.01
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.02-0.03
Mission Ready Services0.23+0.015

 
24130


24605

FEATURED Property
2156777742 Morrison Ave
4 bedrooms 2 baths
$669,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


First-time homebuyer mistakes

If you’re on the hunt for your first home and want to have a smooth and successful home purchasing experience avoid these common first-time homebuying mistakes.If you are looking for your first ...


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...

_



24386

24586


Member of BC Press Council


24433