Image: The Canadian Press
Toronto’s monetary district is envisioned December 30,2011 THE CANADIAN PRESS/Frank Gunn
The Canadian dollar dipped for sixth consecutive day and North American markets fell Thursday after international central banks continued communicate a dovish tone about raising rate of interest.
The loonie traded at an average of 74.42 cents US compared with approximately 74.52 cents United States on Wednesday. Because Feb. 27, the currency has lost 1.65 cents or nearly 2.2 percent.
The downward trajectories for the loonie and markets is significant since of the influence on them from central bank commentary, states Kash Pashootan, CEO and chief financial investment officer initially Avenue Investment Counsel Inc.
” It’s primarily being repelled of the reality that we had weak Canadian GDP numbers come out and that was followed by the Bank of Canada utilizing declarations such as the course of future rates is now more unpredictable,” he said in an interview.
The S&P/ TSX composite index shut down 35.56 indicate 16,05651, after striking an intraday low of 15,98181
Pashootan said markets are returning a few of the strong gains experienced in the first 2 months of the year.
He stated the preliminary recovery was driven by the fact that the fall decline was exaggerated. But the current upward motion is the result of reserve bank remarks rather than market principles.
” We’re now seeing a reversion back to the earlier days of the recovery where the market was so dependent on reserve bank language,” he said.
Thursday’s market decline was led by cyclical sectors like healthcare, which fell almost two percent, customer discretionary, technology and financials.
Defensive sectors like energies increased in addition to energy.
The April crude contract was up 44 cents at US$5666 per barrel and the April gas contract was up 2.5 cents at US$ 2.87 per mmBTU.
The April gold contract was down US$ 1.50 at US$ 1,28610 an ounce and the May copper contract was down 0.8 of a cent at US$ 2.91 a pound.
The crucial monetary sector decreased as bank stocks were struck due to the fact that weaker development can spill over to customer self-confidence, which might prompt weaker spending.
” We do feel that there is an increasing probability that in the second half (of the year) main banks’ around the world language will really go from the slowing of rates increasing to really talking about the capacity of cutting rates.”
In New York City, U.S. markets succumbed to a 4th straight day, losing more than two percent over that period.
The Dow Jones industrial average was down 200.23 points at 25,47323 The S&P 500 index was down 22.52 points at 2,74893, while the Nasdaq composite was down 84.46 points at 7,42146