Thursday, October 30th10.6°C
21625
23823

Loonie up amid data showing lower foreign exposure to bonds, rising commodities

TORONTO - The loonie closed higher Tuesday amid data showing that foreign investors reduced their holdings of Canadian securities in December, mainly in Canadian dollar-denominated bonds.

The commodity-sensitive Canadian currency was up 0.27 of a cent to 91.32 cents US from Friday's close amid rising prices for oil and metals. Canadian banks and North American stock markets were closed Monday for holidays.

Statistics Canada reported that foreign investors cut their holdings of Canadian securities by $4.3 billion in December — a month when the Canadian dollar depreciated against its U.S. counterpart and hit its lowest level since August 2010.

The agency also noted that "the differential between Canadian long- and short-term interest rates continued to widen, as long-term rates were up further while short-term rates eased."

Traders also took in data that illustrated how the U.S. economy is being impacted by severe winter weather.

The Empire State Manufacturing Index for February — a snapshot of manufacturing activity in the U.S. Northeast — declined to a worse than expected reading of 4.48 in February, down from 12.5 in January.

And the National Association of Home Builders' housing market index tumbled 10 points to 46. Economists had expected a flat showing. But the NAHB also reported that its buyer traffic index fell nine points to 31 as fewer prospective buyers felt like braving severe winter conditions in many parts of the U.S. The index had drifted slightly lower in recent months because of a sharp rise in mortgage rates.

Traders also looked to new stimulus measures from the Japanese government and awaited U.S. manufacturing and housing data.

The Bank of Japan plans to top up its monetary stimulus by doubling the size of its fund to support bank lending and its fund to support economic growth.

The funds, which were due to expire shortly, were extended for another year after fourth-quarter economic growth fell short of forecasts despite massive fiscal and monetary stimulus intended to engineer a recovery.

Commodity markets racked up gains as the March crude contract on the New York Mercantile Exchange gained $2.13 to US$102.43 a barrel.

March copper was up two cents to US$3.29 a pound while April gold bullion rose $5.80 to US$1,324.40 an ounce.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14458.69-68.88
S&P CDNX771.65-9.42
DJIA17195.42221.11
Nasdaq4566.138+16.912
S&P 5001994.65+12.35
CDN Dollar0.8932-0.0003
Gold1199.90+1.30
Oil80.72-0.18
Lumber322.40-1.20
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.11+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.150.00
Cantex0.045-0.015
Anavex Life Sciences0.1711-0.0089
Metalex Ventures0.0350.00
Russel Metals32.22-0.35
Copper Mountain Mining1.97-0.05
Colorado Resources0.14+0.005
ReliaBrand Inc0.012-0.004
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.375+0.005

 





FEATURED Property
20242472007 Manufactured Home - 66' x 15-8", #100 McDougall Creek Estates Mobile Home Park
$83,000
more details
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


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...

_








Member of BC Press Council


22707