Canada Stocks Lose 130 Pts In Closing Near Mid-Way Between Day Lows and Highs

Friday, July 31, 2020 4:09 PM | MT Newswires

After experiencing steady selling pressure from the open right through to mid-afternoon, when it hit a day low 16,060.58,

Canada's main stock market, the Toronto Stock Exchange, was propped up over the last 100 minutes or so in recovering about 100 points to cut final losses to 130 points at near 16.170. The recovery may have reflected some bargain buying, and some optimism around a proposed stimulus package in the United, which is Canada's largest trade.

Action Economics mid-afternoon noted the 'fiscal cliff is nigh' in the United States and that seemed to have sparked more constructive talks about a new stimulus package there. However, AE said, it's all pretty uncertain. Chief of Staff Meadows said the White House is willing to compromise in talks. He also said the White House supports Republican Leader McConnell's position on a liability provision. Concurrently, Speaker and Democrat Pelosi said on CNN that her side cannot let the proposed cuts to benefits happen. She added the two sides will find common ground.

Among sectors, Materials gained 2.1%. But Financials lost 1.6% and Energy dropped 1.3%.

Of commodities, gold posted another record close on Friday on weak economic reports but again failed to hold the US$2,000 mark. Gold for December delivery ended up $19.10 to $1,985.90 per ounce, touching a record $2,005.40 in overnight trading after falling back for the first time in 10 sessions on Thursday.

Meanwhile, West Texas Intermediate (WTI) ended higher on Friday, even as OPEC+ readies to add a further two-million barrels per day to the market and demand remains weak as the coronavirus continues to spread. WTI crude for September delivery settled up $0.35 to US$40.27 per barrel, Marketwatch reported. September Brent oil was last seen up $0.38 to US$43.32 while Western Canada Select was up $0.02 to US$30.19 per barrel.

WTI continues to be stalled around the US$40 mark, which may show the market has reached a balance in supply and demand. However the OPEC+ group will raise members production quotas by two-million bpd beginning on August 1, adding new supply while concerns remain that some of the group's members continue to over produce.

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