Loonie Falls Nearly A Cent, Oil Prices Tumble In Tuesday Trading

By The Canadian Press
July 5, 2016 - 4:05pm

Oil prices took a drubbing today as concerns about global economic growth weighed on investors while the Canadian dollar fell nearly a full cent.

The loonie shed 0.95 of a U-S cent, closing at 76.83 cents U-S.

The August crude contract was down $2.39 U-S at $46.60 U-S per barrel.

The Toronto Stock Exchange's S*P/TSX composite index was down 39.30 points to 14,219.57, following a 194.33-point gain yesterday.

In New York, the Dow Jones industrial average was down 108.75 points at 17,840.62, the broader S*P 500 composite index declined 14.40 points to 2,088.55 and the Nasdaq composite dropped 39.67 points to 4,822.90.

August gold rose $19.70 U-S to $1,358.70 U-S an ounce and September copper contracts fell 3.35 cents to $2.1835 U-S a pound.

August natural gas was down 22.3 cents at $2.764 U-S per m-m B-T-U.

Meantime, the British pound has dropped to a 31-year low amid concerns that the country's decision to leave the E-U will hurt commercial real estate values and the wider economy.

Markets were jittery after three financial firms stopped trading in their respective U-K commercial property funds after a rapid increase in investors trying to sell their holdings.

Amid the upheaval, Bank of England Governor Mark Carney relaxed capital requirements for banks to free up money for loans for homes and businesses.

The bank has cited commercial real estate as one of the risks to the British economy but Carney says it will take whatever action is needed to promote monetary and financial stability.


(The Associated Press)


Uptick in price of crude helps loonie climb despite trade deficit

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