Wednesday, October 22nd9.4°C
23711
23129

Loonie lower, markets risk-averse amid airliner crash, Mideast fighting

TORONTO - The Canadian dollar closed lower Thursday with traders becoming risk averse in the wake of the crash of a Malaysian Airlines jetliner in eastern Ukraine.

The currency lost 0.11 of a cent to 92.95 cents US, but found some support from higher oil and gold prices after Ukraine said a passenger plane carrying 295 people was shot down Thursday as it flew over the country. The plane appeared to have broken up before impact.

Nervous investors sent August bullion up $17.10 to US$1,316.90 an ounce.

Traders also bought into other safe havens such as U.S. Treasuries and the American benchmark 10-year bond stood at 2.46 per cent late in the afternoon, down about eight basis points from Wednesday.

Jitters also increased late in the session after the Israeli military said it had launched a ground operation in the Gaza Strip.

Markets were already cautious during the morning because of the latest round of sanctions levied against Russia by the United States.

President Barack Obama announced broader sanctions against Russia, targeting two major energy companies, a pair of powerful financial institutions, eight weapons firms and four individuals. The increased U.S. economic pressure is designed to end the insurgency in eastern Ukraine that is widely believed to be backed by the Kremlin.

"The escalated sanctions against Russia targets a number of regional companies and the United States has confirmed that it will aim to prevent them from accessing all but short-term capital markets," observed Mark Chandler, head of Canadian FIC strategy at RBC Dominion Securities.

Also, the European Union has said it will halt lending for public infrastructure projects in Russia by the European Investment Bank.

"In concert, the lack of any meaningful data, coupled with the sanctions imposed overnight, has led to an old-fashioned 'risk off' day, with equity prices lower and bond prices higher," added Chandler.

Oil prices shot up for a second day with the August contract on the New York Mercantile Exchange up $1.99 to US$103.19 a barrel. Prices ran ahead $1.24 Wednesday in the wake of data showing a much larger than expected drawdown of U.S. inventories last week.

The September copper contract in New York was a cent higher at US$3.22 a pound.

The Canadian Press


Read more Business News

23658


Recent Trending




Today's Market
S&P TSX14312.07-235.64
S&P CDNX808.00-14.28
DJIA16461.32-153.49
Nasdaq4382.847-36.632
S&P 5001927.11-14.17
CDN Dollar0.8886-0.0008
Gold1241.90-3.60
Oil79.80-0.33
Lumber330.40+1.70
Natural Gas3.649-0.01

 
Okanagan Companies
Pacific Safety0.12+0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.055-0.025
Anavex Life Sciences0.198+0.006
Metalex Ventures0.05+0.005
Russel Metals32.53-0.56
Copper Mountain Mining2.10-0.07
Colorado Resources0.145-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.405-0.055

 





FEATURED Property
1619790Loseth Road South
$180,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_








Member of BC Press Council


22707