Toronto stocks move higher, while U.S. stocks mixed; Loonie falls

By Ian Bickis, The Canadian Press

Canada’s main stock index closed higher Thursday while the Canadian dollar dropped for a third day after Bank of Canada governor Stephen Poloz signalled earlier this week that rate hikes could be more gradual going forward.

The Canadian dollar closed at 76.73, down 0.53 of a US cent on the day, and down 1.21 cents US over the past three days.

The drop is partially related to continued expectations for rate hikes in the U.S. and potentially slower rate hikes in Canada, said Allan Small, senior investment advisor of the Allan Small Financial Group.

“Overall, it’s just the notion that the U.S. is about to embark on a higher interest rate, raising interest rates maybe as much as three or maybe even four times, whereas it seems Bank of Canada has maybe downplayed any potential increases for interest rates at least in the short term.”

The continuing uncertainty on NAFTA negotiations, with U.S. President Donald Trump making further complaints about perceived trade deficits in recent days, could also be weighing on the Canadian dollar, said Small.

“I think there’s a lot of worry that these policies coming out of Washington obviously will negatively impact our economy, which obviously is hurting the dollar as well.”

The S&P/TSX composite index closed up 17.01 points to 15,670.62, led by financials and energy stocks.

In New York, the Dow Jones industrial average was up 115.54 points to 24,873.66. The Nasdaq composite index was down 15.07 points to 7,481.74 and the S&P 500 index was down 2.15 points to 2,747.33.

The April crude contract closed up 23 cents at US$61.19 per barrel and the April natural gas contract was down five cents to US$2.68 per mmBTU.

The April gold contract closed down $7.80 at US$1,317.80 an ounce and the May copper contract was down three cents to US$3.13 a pound.

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