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What To Watch In The Canadian Markets This Week

Published 2019-10-07, 08:45 a/m
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Federal Election Campaign In The Headlights

With the federal election exactly two weeks away, the two televised leaders debates this week will be in focus.

The English-language debate will be broadcast on all national networks tonight at 7 p.m. ET, while the French-language debate is set for Thursday.

Climate change, deficits, tax cuts, Conservative leader Andrew Scheer’s U.S. citizenship are all topics that will be in focus as the five party leaders – Justin Trudeau, Scheer, Jagmeet Singh, Elizabeth May and Maxime Bernier – face off.

The Loonie Cuts Its Losses

The Canadian dollar strengthened against of the U.S. greenback by the end of last week, regaining ground it lost earlier in the week. The rally was largely attributed to the latest data figures showing a narrowing in the trade deficit. According to Statistics Canada, the country’s trade deficit in August shrank by about a third to $955 million. Exports rose by 1.8%, marking a reverse from declines in the previous two months.

Also helping the loonie last Friday was an uptick in the price of oil, which was a welcomed move up from the near two-month low which was recorded just the day before.

According to a Reuters poll, the loonie is expected to gain compared with the U.S. dollar during the course of the next 12 months on the strength of the Canadian economy and reduction in the gap in interest rates of the two countries.

The buoyancy of the loonie will help investors calm jittery nerves after a last week’s losses in the equity markets.

First Cryptocurrency Company On TSX Today

A Toronto-based bitcoin miner becomes the first blockchain or cryptocurrency company listed on the Toronto Stock Exchange today. Hut 8 Mining Corp (TSXV:HUT), begins trading on the TSE as part of a new initiative known as the TSX Sandbox.

The initiative, which was announced earlier this year, offers exemptions to several listing requirements providing new companies access to the exchange. In the case of Hut 8 Mining, it meets all the requirements except for one – it has not met the threshold of raising money through a public prospectus. It has raised 140 million privately and through debt. To be eligible for the TSX Sandbox, however, a company must be listed on a TSX-owned exchange. Hut 8 Mining had been listed on the TSX Venture Exchange. All other criteria are modified to fit each applicant

Canadian Jobs Report Out Friday

Canada’s job numbers for September will be released Friday. Analysts are expecting an increase of 8,000 jobs compared with August, with the unemployment rate staying steady at 5.7%.

Last month, the job market recorded an increase in the number of jobs – 81,100. The majority of those new positions, however, were part time in the services sector. Despite the gains, the unemployment rate for August stayed steady at 5.7%.

Given the August results that showed unemployment at near a 40-year low, and last week’s gain in exports, the September employment numbers will be a clear indication of whether the positive trends being seen in the Canadian economy are holding.

Canadian companies reporting this week:

Monday:01 Communique Laboratory Inc (TSXV:ONE)

Trilogy Metals Inc (TSX:TMQ)

Tuesday:Continental Precious Minerals Inc (TSXV:CZQh)

Theratechnologies Inc . (TSX:TH)

Wednesday: EXFO Inc (NASDAQ:EXFO)

Firan Technology Group Corporation (TSX:FTG)

MTY Food Group Inc (TSX:MTY)

Thursday: Colabor Group Inc . (TSX:GCL)

Intellipharmaceutics International Inc (TSX:IPCI)

Velan Inc. (TSX:VLN)

Friday: Aphria Inc (TSX:APHA)

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