Canadian Financial Close: C$ weakens in thin trade

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was slightly weaker on Monday, as investors reacted to relatively soft economic outlook from the Bank of Canada’s quarterly Business Outlook Survey. Activity was on the quiet side, with many markets in the United States closed for Martin Luther King Jr. Day.

The Canadian dollar settled at US$0.7443 or US$1=C$1.3436 on Monday, which compares with Friday’s close of US$0.7470 or US$1=C$1.3387.

Canadian companies expect to see slowing sales going forward, as high interest rates cut into consumer spending, according to the BoC report. An estimated 38 per cent of businesses expect to see a recession over the next year, up slightly from the previous survey.

Canadian manufacturing sales were up by 1.2 per cent in November, hitting C$71.7 billion, according to a report from Statistics Canada. However, sales were down by 0.8 per cent on an annual basis. Wholesale sales in the country increased by 0.9 per cent in November compared to the previous month, hitting C$82.5 billion. Wholesale sales were down by 0.2 per cent on the year.

Crude oil posted small losses, with West Texas Intermediate crude oil down by 0.25 per cent at US$72.50 per barrel.

The TSX Composite Index was stronger, gaining 71.66 points to close at 21,061.88 points.

Canada’s agricultural sector performed as follows:

Buhler Ind.———————-    $ 0.00    at $  2.47

Linamar Corp.——————–up  $ 0.17    at $ 63.09

Maple Leaf Foods—————–dn  $ 0.05    at $ 25.94

Nutrien Ltd.———————dn  $ 1.16    at $ 67.53

RB Global Inc.——————-up  $ 0.03    at $ 86.10

Farmers Edge Inc.—————-up  $ 0.005   at $  0.345

(All figures are in Canadian dollars.)