Canadian Market Update
The combination of soft Canadian GDP– down 0.1% — and falling oil prices has left the loonie exactly where it’s been stuck for the past week — on the losing side. CAD has recouped some of today’s losses as the afternoon wears on, though, with USD/CAD now up only 1 pip to 1.0235, EUR/CAD up 8 pips to 1.5949, and CAD/JPY down 25 pips to 105.40.
A highly volatile day for equities and poor GDP numbers have encouraged safe-haven buying in both the US and Canada. The Canadian 10yr yield is down 11bps to 3.71% and the 2yr is down 12bps to 2.95%.
Meanwhile, the energy heavy S&P/TSX is on a rollercoaster ride yet again, currently down 46 points to 13,634 after y/day’s 350-point leap. Suncor Energy is off 3.1% and Canadian Natural Resources is down 2%.
The Toronto index plunged 100 points earlier in the day, but RIM drove the rebound with a 3.7% gain. Financials have also held on firmly with RBC up 1% and CIBC up 1.5%.