In the last trading session, Canada’s primary stock index rocket. At one point, it jumped more than 200 points at late-morning trading. An increase in the telecommunication and utility sectors propelled the increase. This growth put a rocket under investor sentiment. At the same time, U.S. stock markets were experiencing their own meltdown, with all the major indices tumbling sharply.
The more closely watched June gold contract vaulted higher, soaring by US$48.10 to US$3,281.60 an ounce. This increase is a clear continuation of sustained investor demand for gold as a safe-haven asset in uncertain and volatile market conditions. The July delivery of copper dropped three cents to settle at US$4.64 per pound. This recent decrease is a direct reflection of the slumping demand of the industrial metal.
The Canadian dollar averaged 71.67 cents USD so far this week. This represents an increase relative to its former value of 71.54 cents USD on Friday. The stronger dollar will have significant impacts on Canadian exports, especially in Canadian commodity markets.
The July crude oil contract was down 30 cents at US$61.84 per barrel. This is in line with recent trends that have been putting downward pressure on oil prices around the world. By comparison, the June natural gas contract went in the other direction. In the week ending October 6, it gained 26 cents, to US$3.37 per mmBTU, which indicates that demand in that sector is increasing.
Looking to U.S. markets, the Dow Jones Industrial Average closed down -64.42 points, closing at 42,727.65. In like manner, the S&P 500 index fell by 16.94 points to close at 5,946.66. The Nasdaq composite suffered big losses, down 85.73 points at 19,129.73.
This divergence between Canadian and U.S. markets could be an indication of low or varying economic conditions and levels of investor confidence in each market. Our analysts believe that changes in commodity prices and in sector performance are the two primary drivers affecting today’s market movements.
