Canadian Financial Close: New COVID-19 variant rattles markets

WINNIPEG – A newly identified COVID-19 variant of concern by the World Health Organization (WHO) has brought down both the loonie and world markets.

The loonie fell to its lowest level since Sept. 21, closing at US$0.7830 or US$1=C$1.2771 on Friday, down from Thursday’s close of US$0.7903 or US$1=C$1.2654. The WHO announced today that the “Omicron” variant, discovered in South Africa and other neighbouring countries, may be more transmissible than the Delta variant. The United States and the United Kingdom promptly took action by banning flights from countries in southern Africa.

The U.S. Dollar Index dropped 0.76 of a point to 96.01. U.S. markets closed early on Friday due to the Thanksgiving holiday.

Benchmark crude oil prices took huge hits on Friday. Brent crude oil fell US$9.50 per barrel to US$72.72. West Texas Intermediate (WTI) crude oil plummeted US$10.24 to US$68.15/barrel. Western Canadian Select (WCS) crude oil sunk US$9.85 at US$48.86/barrel.

The TSX/S&P Composite Index took a major plunge, losing 487.28 points or 2.25 per cent to 21,125.90, its lowest close in nearly a month. The U.S. markets tumbled 2.2 to 2.7 per cent.

As a safe haven, gold took advantage of the market chaos, advancing US$6.50 per ounce to US$1,793.40.

Canada’s agricultural sector fared as follows:

Buhler Industries dn $ 0.01 at $ 3.11
Farmer’s Edge Inc. unchanged at $ 3.50
Linamar Corp. dn $ 0.78 at $ 76.75
Maple Leaf Foods dn $ 0.80 at $ 29.03
Nutrien Ltd. dn $ 2.11 at $ 86.70
Ritchie Bros Auctioneers Inc. dn $ 0.72 at $ 88.28

(All figures are in Canadian dollars.)