Canada Stocks Close Down 130 Pts or Near 1%; Mood Not Helped By Both Kinder Morgan and Tim Hortons
The Toronto Stock Exchange reopened Tuesday after the long holiday weekend, but those who traded may be wishing they were still on a break after Canada's main stock market lost more than 130 points or near 1% and closed near session lows, although there were modest signs of upward momentum right at the end of the day.
The losses came despite gains, albeit modest, for WTI oil and gold, but may reflect some fears among market participants around an escalating diplomatic dispute with Saudi Arabia and some negative press around two high profile companies.
The Canadian Press cited Kinder Morgan Canada (KML.TO) documents as saying expanding the Trans Mountain pipeline will cost the federal government another $1.9 billion beyond the company's original construction estimate and will take another full year to complete. The Canadian Press also reported that Tim Hortons parent company Restaurant Brands International (QSR.TO) says it closed four more American locations of the coffee-and-doughnut chain.
Among commodities, gold futures closed up near 0.2% on Tuesday at around US$1,218 an ounce, reflecting similar size losses for the U.S. dollar. September silver rose even less, near 0.05% to $15.355 an ounce. But West Texas Intermediate oil for September also settled up around 0.2% on Tuesday, in its case at near US$69.20 a barrel amid concerns about global supply given U.S sanctions against Iran. Focus now turns to inventory data due from the American Petroleum Institute later today and then from the Energy Information Administration on Wednesday morning.
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