That follows a down day on Monday, where Canada’s benchmark index closed 0.46 per cent lower.
South of the border, the Dow fell almost two hundred points or 0.59 per cent, while the Nasdaq lost 0.09 per cent and the S&P 500 dropped 0.2 per cent. Attention in Canada is keenly focused on tomorrow’s Bank of Canada policy announcement, where interest-rate swaps are pricing in a little more than a 40 per cent chance the central bank raises its key lending rate a quarter-point to 4.75 per cent.
West Texas Intermediate is down more than two per cent and trading below US$71 per barrel. Traders are now focused on the outlook for supply and demand. Ed Morse, global head of commodities strategy with Citi Research, wrote in a note this morning that, “demand is looking weaker and non-OPEC supply stronger by year-end than many analysts had forecast. Both OPEC and the IEA forecasts have had an air of wishful thinking about accelerating demand growth by year-end.
Mobileye shares are down more than five per cent ahead of the opening bells after Intel said it would sell part of its holdings in the company in order to raise over a billion dollars to help fund its plans to regain the lead in the semiconductor industry. Shares of GitLab are surging in the pre-market trade after the software company provided revenue guidance for the full year that topped analyst expectations. Notable earnings: JM Smucker Co., Dave & Buster’s Entertainment