North American markets fall, Canadian dollar declines Monday

On commodity markets, September copper gave back 3.4 cents to US$2.287 a pound and the December gold contract fell $1.50 to US$1,116.90 an ounce.

The S&P/TSX composite index was down 49.83 points at 14,201.70, an improvement from a triple-digit drop earlier in the morning that followed a major decline in China’s Shanghai stock market.

Iran is expected to increase its oil exports once Western sanctions are lifted after ratification of a recent nuclear deal.

Cieszynski said oil, which has lost more than half its value since hitting highs above $110 in July 2014, has become oversold in the past six months as investors reacted to headlines about increasing supply and poor prospects for demand.

In addition to being the world’s third-largest economy behind the United States and China, it is also the world’s third-largest consumer of oil.

Cisco shares fell 1.5 per cent to $28.58 after Morgan Stanley downgraded the stock to “equal-weight” from “overweight”.

The TSX fell for the second consecutive session Tuesday as volatility in Chinese stock markets dragged down commodity prices.

The Dow Jones industrial average was down 180.92 points at 17,330.42, the Nasdaq index dropped 48.68 points to 5,010.67, and the S&P 500 declined 20.49 points to 2,076.43.

The loonie rose 0.18 of a U.S. cent to 76.56 cents US.

“The good data on housing is certainly helpful since its 4 per cent of the U.S. GDP”, said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

Orengo said Canada’s dollar has fallen because of the country’s perceived dependence on oil and the relative strength of the U.S. economy. The bank said that should trigger production to get shut off, but cautioned that it can be costly, especially for Canadian oil sands producers.