Friday, November 28th-7.8°C
22246
24225

Canadian dollar gains amid higher gold, little domestic economic data

TORONTO - The Canadian dollar ended Tuesday higher, as gold prices continued to climb.

The loonie gained 0.03 of a cent to 91.71 cents US.

August bullion gained $6.20 to US$1,260.10 an ounce. In other commodities, the July crude contract in New York fell six cents to US$104.35 a barrel while July copper was ahead a penny to US$3.05 a pound.

"The Canadian dollar is going to follow oil prices and natural gas prices," said Ian Nakamoto, a research director at firm 3MACS.

Investors are digesting news from China overnight that showed inflation rose to a five-month high of 2.5 per cent in May, driven by higher food prices.

The Chinese government reported that inflation is still is below the ruling Communist party's 3.5 per cent target for the year, leaving room for interest rate cuts or other measures to stimulate the slowing economy if needed. May inflation was up from the previous month's 1.8 per cent, boosted by a 4.1 per cent rise in food prices.

Chinese economic growth slowed to 7.4 per cent in the three months ended March 31 from the previous quarter's 7.7 per cent. Other indicators suggest growth might slow still further in the current quarter.

Equities markets have been optimistic about the global economy following the recent release of several economic indicators.

Last week, the European Central Bank announced that it was going to deal with the threat of deflation and give some lift to a tepid economic recovery in the eurozone by cutting its lending rate to 0.15 per cent from 0.25 per cent and dropping its overnight deposit rate to minus 0.1 per cent from zero.

The additional monetary stimulus from the ECB was welcomed news, as traders had been counting on the bank to take action to save the eurozone from falling into a deflationary spiral that would choke off growth.

Positive signs have also been emerging from other economies since last week, including stronger first quarter growth in Japan, an improvement in China's exports and a solid U.S. jobs report for May.

Indications that the U.S. economy is on a roll this quarter after a bumpy start to the year have also helped push American stock benchmarks higher for the past month.

Meanwhile, in Canada, a survey by international human resources firm Manpower Inc. suggests about 20 per cent of Canadian companies expect to add to their payrolls in the third quarter.

But when factoring in seasonal variants, Manpower says that figure falls to 10 per cent. Overall, four per cent of firms surveyed said they expected to shed workers in the July-September period.

Most of those surveyed, 74 per cent, said they planned on keeping staffing levels the same, while two per cent were unsure what their hiring would be like in the upcoming quarter.

The survey found that hiring intentions were most favourable in Western Canada, with employers there reporting the highest net employment outlook out of any region at 15 per cent.

Follow @LindaNguyenTO on Twitter.

The Canadian Press


Read more Business News

23967


Recent Trending




Today's Market
S&P TSX14744.70-177.74
S&P CDNX741.87-13.53
DJIA17828.240.49
Nasdaq4791.63+4.312
S&P 5002067.56-5.27
CDN Dollar0.8756-0.0004
Gold1175.20-21.40
Oil66.15-7.54
Lumber329.40+1.40
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.145-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.07
Cantex0.04-0.005
Anavex Life Sciences0.1998+0.0288
Metalex Ventures0.06+0.02
Russel Metals29.91-0.79
Copper Mountain Mining1.94-0.18
Colorado Resources0.125-0.005
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.05+0.005
Mission Ready Services0.325+0.005

 
24130


23630

FEATURED Property
202900613472 Parkside Crescent
10086203 bedrooms
$185,900
more details
Click here to feature your property
Please wait... loading


Don't stop dreaming!

On Wednesday evening I drove through the Bow Valley in Alberta. It is my old home town... the first place Jackie and I moved to in 1988 when we emigrated. We ended up setting up home there and living...


Second marriage issues

It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals ente...


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...

_



24220

24160


Member of BC Press Council


23370