Canadian markets take a hit as commodity prices fall, U.S. dollar strengthens

Canadian markets experienced a downturn on Tuesday, with both the TSX Composite and the TSX Venture Exchange falling by 1%. This was influenced by declining commodity prices, including oil and gold, and a strengthening U.S. dollar. The Canadian dollar fell to 72.67 cents U.S., further exacerbating the situation.

Crescent Point Energy (NYSE:)’s shares were among those affected, dropping after the company acquired Hammerhead Energy for $2.55 billion. This contributed to the selloff in energy stocks. On November 1, 2023, the S&P/TSX composite index displayed a drop of over 100 points to 19,616.63 due to the energy sector’s downturn as oil prices fell to US$78.40 per barrel.

In contrast to the Canadian market’s performance, Wall Street showed mixed results on Tuesday with minor gains for the and the . Technology stocks like Microsoft (NASDAQ:), Amazon (NASDAQ:), Advanced Micro Devices (NASDAQ:), and Datadog (NASDAQ:) saw significant gains. The NASDAQ also jumped significantly while the 10-year Treasury gained ground.

Despite the market fluctuations, Statistics Canada reported a doubled trade surplus of $2 billion in September due to increased merchandise exports and imports. This week, investors are also looking forward to quarterly results from Disney, Wynn Resorts (NASDAQ:) and Occidental Petroleum (NYSE:).

While these market shifts occurred, December contracts for commodities like gold traded at US$1,972.50 an ounce on November 1, while , , and also experienced declines. Amid these changes in financial markets, Winnipeg Jets Game Days continued its regular hockey updates as usual.

These market changes were first reported by The Canadian Press on November 7, 2023.

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