Canada Dollar Falls Amid Concern Over U.S. Shutdown Impact, Oil
As Tropical Storm Karen moved through the Gulf of Mexico, affecting U.S. energy output, the price of oil rose on supply concerns. With the U.S. government shutdown dragging into a fourth day, investors watched closely as Republican members of the House of Representatives got together to chart their next course of action. But the market appeared to shrug off fears that lawmakers will fail to resolve the budget crisis and prevent a debt default. Rick Hutcheon, president and chief operating officer at RKH Investments, said the TSX will tread water until the U.S. political situation is resolved but will make gains as the economy improves and commodity prices stabilize. “Everyone is sitting on their hands, waiting for Washington to make their move,” he said. “They’ll have their bickering and fighting, but ultimately they’ll come to an agreement.” “I don’t see it having a huge impact on Canada,” he said, but added that the longer the U.S. impasse lasts, the more negative it could be for the Canadian market. The Toronto Stock Exchange’s S&P/TSX composite index was up 37.36 points, or 0.29 percent, at 12,772.48. Nine of the 10 main sectors on the index were higher.
2 Canadians released from in Egyptian prison after Canada warns detention would mar relations
One Canadian dollar buys 97.14 U.S. cents. Bonds Fall Canadas benchmark 10-year government bond declined for the first time in four weeks, pushing yields on the benchmark security up two basis points, or 0.02 percentage point, to 2.58 percent. The price of the 1.5 percent security due in June 2023 fell 18 cents to C$90.85. The U.S. government began its first partial shutdown in 17 years on Oct. 1 as Republicans who control the House insisted on changes to the nations 2010 health-care law, President Barack Obama s signature legislative achievement. The Senate, controlled by Democrats, refused. Congress also faces the $16.7 trillion statutory debt ceiling, which the Treasury has said will be reached Oct. 17. The shutdown is bad for growth in Canada, and as we get closer to the debt-ceiling deadline there is more concern manifesting, which is weighing on the U.S. dollar relative to the loonie, Shaun Osborne , chief currency strategist at Toronto-Dominion Banks TD Securities unit in Toronto, said by phone.
Canada’s Foreign Affairs department said late Saturday Oct. 5, 2013 the two Canadians held without charges for the past several weeks in Egypt have been released from prison. (AP Photo/Loubani and Greyson family)The Associated Press FILE – This undated file family photo provided by Cecilia Greyson shows Canadian filmmaker John Greyson, who has been in detention in Egypt since his arrest on Aug. 16, 2013 in Cairo. Canada’s Foreign Affairs department said late Saturday Oct. 5, 2013 two Canadians, Greyson and Tarek Loubani, a physician and professor, held without charges for the past several weeks in Egypt have been released from prison. (AP Photo/Courtesy Cecilia Greyson, File)The Associated Press FILE – This undated family photo shows Canadian doctor Tarek Loubani, who has been in detention in Egypt since his arrest on Aug. 16, 2013 in Cairo. Canada’s Foreign Affairs department said late Saturday Oct. 5, 2013 two Canadians, Loubani and John Greyson, a filmmaker and professor, held without charges for the past several weeks in Egypt have been released from prison. (AP Photo/Loubani family photo, File)The Associated Press