Toronto stock market falls, Canadian dollar declines Monday

The Toronto Stock Exchange closed slightly lower Monday as energy stocks were pulled down by the continuing slump in the price of oil.

On the TSX, the place power makes up a big portion of the index, “you’re actually getting the aid rally in power and supplies after such a precipitous drop within the shares for such a very long time”, he stated.

“We have seen Brent swing up and down over the past two weeks because of a lack of consensus about where oil should go directionally”, BNP Paribas energy commodities strategist Gareth Lewis-Davies said.

On commodity markets, the September crude contract ended the day down 63 cents at US$41.87 a barrel, while the December gold contract rose $5.70 to US$1,118.40 an ounce.

“The end of the summer driving season and the start of refinery maintenance season will weigh on near-term demand and pressure prices”, said Societe Generale oil analyst Michael Wittner. The recently signed deal on Iran’s nuclear program loosened sanctions on that country’s oil shipments, which will help keep prices low, Orengo said.

Crude slipped after Japan said its economy shrank in the second quarter, while China’s slowing growth is also causing concern.

The global oversupply picture was exacerbated by another weekly jump in U.S. oil rig additions on Friday, hinting at growing production, and news that Oman produced a record-breaking 1 million barrels per day in July.

Dow Jones Industrial Average e-mini futures 1YMc1 were down 0.03 percent at 7:15 a.m. ET, while S&P 500 e-mini futures ESc1 were down 0.11 percent and Nasdaq 100 e-mini futures NQc1 were down 0.06 percent. [.N].

The loonie traded at 76.16 cents US, down 0.22 of a U.S. cent from Friday.

The United States is by far Canada’s largest trading partner and investors hope recovery south of the border stimulates activity here.