Update: TSX to Slip at Open on Falling Oil Prices
Canada's benchmark index may kick off the shortened trading week with losses as oil prices fall amid doubts that a reduction in oil output by major producers would happen. Stock futures for the March quarter on the S&P TSX index were down 0.4% recently.
Reports said Saudi Arabia and Russia agreed to cut production but only if Iran, Iraq, and other producers join in. Compliance of Iran and Iraq, however, aren't expected. At last check, Brent was down 0.7% at US$33.16/barrel, while the WTI slipped 0.4% to US$29.33/barrel.
Furthermore, BMO in its morning note said global equity markets were broadly weaker last week, with the TSX falling -0.8%. That was actually one of the better performances as the Nikkei (-11.1%), CAC40 (-4.9%) and DAX (-3.4%) saw the largest declines. For the TSX on a sector basis, gold (+9.6%) powered a 3.5% gain in materials. Industrials (+0.7%) was the only other sector in the green. Health care (-8.6%), utilities (-7.8%) and energy (-6.1%) were the laggards for the week.
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