Canada Stocks Lose 122 Pts Today, Taking Losses To Near 1,000 Pts In Less Than Three Weeks; Cannabis Stocks In Focus

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Canada's main stock market, the Toronto Stock Exchange, closed down again -- this time by 122 points on Thursday, taking total losses in the last 14 sessions to near 1,000 points -- as a less dovish than expected rates and economic update from Fed Chair Powell yesterday added to existing concerns about slowing global economic growth, and even around a possible recession. Then add to the mix geopolitical concerns around the Middle East and oil supplies should U.S. troops, indeed, be pulled out of the region; the threat of a U.S. government shut down; and a non-Brexit, and you have plenty of cause for unease.

Chad Morganlander, a Senior Portfolio Manager at Washington Crossing, told BNN Bloomberg TV his firm has been warning all year about slowing global economic growth, low equities returns and rising US fed funds rate competitive to risk assets, particularly in relation to the United States. But Morganlander said a deceleration in growth is being seen not just in the U.S., but across the world, including China and Europe for example. "There is more of a cautious perspective on taking risk," he added.

One shining light for the resources heavy index came with gold closing up US$11.50 or 0.9%, at US$1,267.90 per ounce. But oil prices fell 4.8% on Thursday, reaching the lowest in more than a year on worries over the economy and oversupply. West Texas Intermediate crude for February delivery settled US$2.29 to US$45.88 per barrel. February Brent crude was last seen down US$2.84 to US$54.40.

Meanwhile, in terms of the high profile, emerging and lively cannabis sector, Health Canada's proposed regulations on how cannabis edibles and extracts will be sold in Canada were released Thursday, including a hard cap on the amount of THC these products can contain, BNN Bloomberg is reporting.

It cited a statement in which Health Canada said edibles will be permitted for legal sale in Canada no later than Oct. 17, 2019, exactly one year to the day since recreational cannabis was legally available for sale in the country. Health Canada reportedly stated there will be a cap of 10 milligrams of tetrahydrocannabinol ( THC ), the main psychoactive ingredient found in the cannabis plant, per package of edibles. Cannabis extracts will be limited to 10 mg of THC per unit and no more than 1,000 mg in a package. Cannabis topicals, such as lotions, will be limited to 1,000 mg or one gram of THC per package.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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