Despite the unexpected drop in manufacturing activity in the New York region (Empire Manufacturing Index), the release yesterday of the confidence index for construction companies in the residential market -- highest level in the past 10 years -- was well-received by markets and helped provide a spark to what had started out as a difficult day. The situation was quite different for Asian markets, as the main Chinese index fell by 6%. The uncertainty surrounding the yuan and the bombing in Thailand resulted in massive profit taking.
Crude oil prices are falling again this morning, after having posted losses during the past seven weeks. The economic difficulties experienced by China and Europe are impacting global demand, while U.S. production coupled with the return of Iranian oil on the markets is pointing to abundant supply. All these factors are weighing down on the loonie, which is trading close to the low recorded at the start of the month.
There are few economic indicators on the program today. U.S. Housing Starts were released at 8:30 a.m. and advised our clients to take advantage of market fluctuations and leave orders with our team.
- Range of the day: 1.3050 - 1.3165
Emmanuel Tessier-Fleury