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Canadian Stocks Slump On Lower Commodity Prices

Canadian stocks slumped Monday, unable to keep pace with surging U.S. equities as commodity prices turned lower.

There was little euphoria in Canada for the passage of long-awaited U.S. tax reforms and OPEC's supply quota extension.

The TSX Composite Index was down 69 points to 15,969.03.

Husky Energy Inc. (HSE.TO) said it is on track to exceed the 2018 targets for funds from operations and free cash flow outlined at its 2017 Investor Day.

The company expects funds from operations for 2018 to exceed $4 billion and free cash flow to be about $1 billion at pricing of $55 WTI, $2.50 AECO and a $15 per barrel Chicago 3:2:1 crack spread. Shares fell 1.4 percent.

Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO) announced that it has launched an offering of $1 billion aggregate principal amount of unsecured senior notes due 2025. Shares rose 1.3 percent.

Bombardier Aerostructures and Engineering Services (BBD.B.TO) says it has been chosen by Airbus as a supplier on a new engine nacelle program.

The company's operations in Northern Ireland will develop and manufacture a new thrust reverser for the Pratt & Whitney powered A320neo family of aircraft. The stock rose 1.5 percent.

Crude oil futures fell Monday for the first time in three sessions, as a strong dollar dented commodity prices.

Jan. WTI oil was down 89 cents, or 1.5%, to settle at $57.47/bbl.

Gold prices fell as U.S. stocks rallied on tax reform. Over the weekend, the Senate voted 51 to 49 in favor of the bill known as the Tax Cuts and Jobs Act.

However, President Donald Trump now says he may prefer a higher corporate rate than the one Senate Republicans passed.

"Business tax all the way down from 35 to 20," Trump said "It could be 22 when it all comes out, but it could also be 20. We'll see what ultimately comes out."

Feb. gold settled at $1,277.70/oz, down $4.60, or 0.4%.

In economic news, a report released by the Commerce Department on Monday showed a modest decrease in new orders for U.S. manufactured goods in the month of October.

Factory orders edged down by 0.1 percent in October after surging up by 1.7 percent in September. Economists had expected orders to drop by 0.4 percent.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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