Monday, July 27th21.9°C
26925
26337

Canadian dollar advances amid strong trade data, geopolitical concerns

TORONTO - The Canadian dollar closed higher Wednesday as a much better than expected domestic trade report trumped geopolitical concerns.

The loonie was up 0.39 of a cent to 91.63 cents US as Statistics Canada reported that the country's trade surplus shot up to $1.9 billion in June from a revised $576 million in May.

Economists had generally expected a $100 million trade deficit. The improvement came as exports rose 1.1 per cent to a record high of $45 billion in June, while imports declined 1.8 per cent.

Exports of energy products were up 2.5 per cent to $11.9 billion. Crude oil and crude bitumen increased 2.8 per cent to a record high of $8.9 billion, as prices rose 2.2 per cent.

Despite the small gain for the loonie, it was generally a risk off day on financial markets with geopolitical worries were front and centre after news reports emerged about a buildup of Russian troops on the Ukraine border. On Tuesday, Poland’s prime minister said he had information indicating that there was a growing threat of a "direct intervention" by Russia in Ukraine.

In addition, Russian president Vladimir Putin has told his government to prepare retaliatory measures against sanctions that have been levied by the U.S. and the EU for his country's support of Ukrainian rebels.

There was also glum data out of Europe.

Italy's gross domestic product contracted 0.2 per cent in the second quarter, which added to a negative showing in the first quarter, meaning the country is in technical recession.

And German industrial orders were 3.2 per cent lower than in May, when they also fell by 1.6 per cent.

The Federal Statistics Office said that geopolitical developments and risks were a likely cause for the decrease in new orders and that they expected only moderate development in the coming months.

Nervous investors bought into the U.S. currency and sent gold prices higher.

The yield on the benchmark U.S. 10-year Treasury was 2.47 per cent late in the afternoon, down from 2.51 per cent late Tuesday.

December bullion was ahead $22.90 to US$1,308.20 an ounce.

September copper fell four cents to US$3.17 a pound while September crude dropped 46 cents to US$96.92 a barrel.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14001.37-184.87
S&P CDNX581.71-10.78
DJIA17440.59-127.94
Nasdaq5039.78-48.85
S&P 5002067.64-12.01
CDN Dollar0.7671+0.0003
Gold1093.90+8.30
Oil47.55-0.30
Lumber258.10+0.40
Natural Gas2.787-0.002

 
Okanagan Companies
Pacific Safety0.18-0.01
Knighthawk0.010.00
QHR Technologies Inc1.36-0.04
Cantex0.05+0.00
Anavex Life Sciences0.91+0.13
Metalex Ventures0.06-0.01
Russel Metals19.45-1.73
Copper Mountain Mining0.80-0.03
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.01
Mission Ready Services0.15+0.00
Decisive Dividend Corp2.70-0.05

 



26959

FEATURED Property
23550451350 Ridgeway Dr
2 bedrooms 2 baths
$249,900
more details
image2
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 ...

_





27114


Member of BC Press Council


26465