BEFORE THE BELL: Loonie falls lower; US China trade war back on the table
Canada’s currency is floundering as its US counterpart gains strength.
The Loonie is nearing a one year low as it falls to 76.09 cents US this morning. Experts say the US Federal Reserve decision to hike the interest rate and two more possible rate hikes coming this year has weighted the Loonie.
Meanwhile, trouble could be brewing on the global stage as Donald Trump is reportedly approving billions in tariffs on Chinese imports. According to experts, investors are concerned Trump’s protectionist stance could deal a major blow to global economic growth. The move could also destabilize negotiations between the US and North Korea as China is the country’s biggest trade partner.
Traders are looking to telecom stocks this morning after the feds ordered a review of sales practices with Canada’s big service providers.
Crude prices continue to slide as world producers are expected to increase output. The price of US oil is sliding to 66.73 a barrel.