The Canadian dollar was down sharply and stock markets declined moderately Friday morning.
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The metals and mining sector of the TSX was the lead decliner, slipping more than four per cent, while global gold declined four per cent.
Meanwhile, shares in Quebec-based Valeant Pharmaceuticals (TSX:VRX) took another big hit Thursday following reports that a major hedge fund had sold their investment in the company amid increased scrutiny among US politicians over its business and pricing practices.
Canada’s main stock index fell on Wednesday as Federal Reserve Chair Janet Yellen’s comments in support of a possible USA interest rate hike in December broadly weighed on equity markets and commodity prices. Valeant’s shares were down $15.50, or nearly 13 per cent, at $105.70.
The Dow Jones average of 30 stocks was up 64.10 points at 17,892.86, the broader S&P 500 index was up 0.49 point at 2,104.54 and the Nasdaq index was up 1.25 point at 5,128.39.
“In our view it’s a great thing if they can get rates off zero, because it means the economy, at least in their view, is on a better trajectory”.
Gold prices slid 63 cents to $1,107.27 U.S.an ounce.
Oil, like most commodities, is priced in US dollars, and a higher greenback tends to depress prices since that makes commodities more expensive for holders of other currencies.
Leslie Preston, an economist from TD Bank, said: “given the softer tone in recent surveys of hiring intentions, we do expect employment gains to slow in the coming months, leading to a gradual decline in the unemployment rate”.
Toronto’s S&P/TSX composite index gave back 5.48 points to 13,553.30, while the loonie lost 0.73 of a US cent to 75.21 cents U.S.
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Fellow pipeline company Enbridge Inc fell 2.2 percent to C$51.74 a day after saying a delay in starting up a crude pipeline between Ontario and Quebec would hurt its earnings.
