Compiled by Glen Hallick, MarketsFarm
WINNIPEG, Sept. 26 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.
– The United States dollar continued to surge on Monday, setting a new 52-week high on the U.S. Dollar Index. Weighted against six other major world currencies, including the Canadian dollar, the greenback’s December contract pushed above 113 points. That made U.S. exports and other global goods traded in U.S. dollars more expensive, such as crude oil. That forced West Texas Intermediate to slide below US$80 per barrel on Monday. In turn that could see OPEC cut production in order to sustain higher prices for crude.
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By Glen Hallick Glacier Farm Media | MarketsFarm – The following is a glance at the news moving markets…
– As Kwasi Kwarteng remains barely settled in as the United Kingdom’s Chancellor of the Exchequer, his mini budget has brought additional turmoil to the country’s inflation-battered economy. On Friday, Kwarteng introduced the largest tax cuts in 50 years at the equivalent of C$66.7 billion. Then on Monday, the U.K. pound plummeted to its lowest level in 37 years, now at almost par with the U.S. dollar, which further exacerbates the cost of food imports. Neither Kwarteng nor Prime Minister Liz Truss have yet to comment on the tumbling pound, although Kwarteng indicated more tax cuts could be on the way.
– Tropical Storm Fiona slammed into Atlantic Canada over the weekend, causing widespread damage. At Fiona’s peak, winds were approximately 140 kilometres per hour and upwards to 200 millimetres of rain fell. As of Monday, approximately 500,000 people in Atlantic Canada remained without electricity as Fiona downed powerlines. Despite crews working around the clock to restore power, rain in the forecast will slow efforts. States of emergency have been declared in throughout the region.
