Tuesday, July 28th21.8°C
26383

Canadian dollar charges ahead as data shows economy put in solid showing in '13

TORONTO - The Canadian dollar closed sharply higher Friday amid data showing the economy slowed more than expected in December but that overall growth last year still turned out to be the best since 2011.

The loonie ran up 1/2 a cent to 90.3 cents US.

Statistics Canada reported that fourth-quarter economic growth came in at an annualized pace of 2.9 per cent. That was better than the 2.5 per cent rise that had been expected. But gross domestic product contracted by 0.5 per cent in December, more than the expected 0.3 per cent drop.

Other data out of Ottawa showed that the federal budget was in the black in December as Ottawa recorded a $1.15-billion surplus. That compares with a $700-million deficit recorded in December 2012.

The government forecasts a $16.6-billion deficit for the 2013-14 fiscal year ending March 31, and the December figure is close to that track. For the nine months to December, the deficit was $12.7 billion.

In the U.S., the first revision to fourth quarter GDP showed that the economy grew at an annualized rate of 2.4 per cent, matching expectations but down sharply from the original 3.2 per cent reading.

By contrast, Statistics Canada raised its initial estimates for the first two quarters of 2013 and said the overall growth rate for the year was 2.0 per cent.

Meanwhile, the Chicago Purchasing Managers Index, a gauge of manufacturing activity in the American Midwest, showed stronger than expected expansion this month, coming in at 59.8, up from 59.6 in January.

And the University of Michigan's influential consumer confidence index came in at 81.6, up from 81.2 in January.

Investors are keeping an eye on the crisis in Ukraine following accusations by the country’s new interior minister, Arsen Avakov, that the Russian military is blocking a Ukrainian military airport in the Black Sea port of Sevastopol in Crimea.

IG market analyst Stan Sahmu said that while traders for now are focused on economic indicators, “the Ukraine situation seems to be escalating in the background and could haunt markets in coming weeks.”

On the commodity markets, the April crude contract on the New York Mercantile Exchange gained 19 cents to US$102.59 a barrel.

May copper was down a cent at US$3.19 a pound while April gold bullion dropped $10.20 to US$1,321.60 an ounce.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14077.36+75.99
S&P CDNX586.97+5.25
DJIA17630.27+189.68
Nasdaq5089.21+49.43
S&P 5002093.25+25.61
CDN Dollar0.7729-0.001
Gold1097.10+0.60
Oil48.28-0.13
Lumber259.50+3.40
Natural Gas2.842+0.021

 
Okanagan Companies
Pacific Safety0.175-0.005
Knighthawk0.010.00
QHR Technologies Inc1.37+0.01
Cantex0.05+0.00
Anavex Life Sciences0.78-0.13
Metalex Ventures0.06-0.01
Russel Metals18.35-1.10
Copper Mountain Mining0.82+0.02
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.15+0.00
Decisive Dividend Corp2.60-0.10

 



26764

FEATURED Property
2340991549 McClure Road, Kelowna
5 bedrooms 4 baths
$974,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_



26586

26509


Member of BC Press Council


24697