Canadian crude prices rise with global benchmarks, gaining 8% for the week
Credit Suisse raised its 2019 price forecast for both Brent and WTI by US$3.50 per barrel, due to falling OPEC production. The bank now expects Brent to average US$66.50 this year, while WTI is forecasted at US$57.50.
This week's notable Canadian economic data:
After several months of big gains, StatsCanada reported the loss of 7,200 jobs last month. Saskatchewan, PEI and New Brunswick added new positions, while most the other provinces were little changed. The national unemployment rate held steady at 5.8% in March.
Canadian bond yields rose in sympathy with US interest rates. The loonie sank 0.3% for the week, ending Friday below 75 cents.
This week's US economic news:
Chinese President Xi Jinping said his country was making progress in trade talks with the US. President Donald Trump initially hinted a deal could be announced in early May, but later warned of further retaliatory action if remaining issues were not resolved.
Non-farm payrolls rose by 196,000 in March, slightly better than economists were expecting. The unemployment rate was unchanged at 3.8%.
Hourly wages ticked up only 0.1% for the month, reducing annualized wage gains to 3.2%. US jobless claims also declined to a 49-year low last week.
US bond yields all moved higher this week, particularly on the long end of the curve. The greenback was roughly unchanged for the week.
Across the pond this week:
Better-than-expected Chinese manufacturing data released early in the week eased global recession fears, and boosted global bond yields.
The Bank of Japan reported further erosion in business confidence, falling to a six year low in the first quarter. The yen sank 0.7% for the week.
Germany’s industrial orders posted another sharp pullback in February, the worst in more than two years.
Yields on Japanese and German 10-year notes also moved higher this week, with German bund yields climbing back to zero.
A sea of green in world equity markets this week. The Shanghai exchange was the best performer, rising over 8%.
In New York, the NYSE rose almost 2%, while the tech-heavy NASDAQ gained almost 3%. The S&P 500 Large Cap Index rose 2.1%, while the Dow Jones Industrial gained 1.9%. US markets were definitely in offensive mode this week, with only staples and utilities posting losses for the week.
In Toronto, the TSX also rose almost 2%. Discretionary, financial and energy stocks posted the biggest gains.
The Canadian energy sector gained 3.4% for the week, while the SPX energy sector rose 2.2%. Gains were seen across all subsectors.
|Suncor Energy||SU||44.50||▲2.7||35.53||55.47||D W|
|Imperial Oil||IMO||36.57||▲0.2||33.52||44.91||D W|
|Husky Energy||HSE||13.69||▲3.3||13.21||22.99||D W|
|Pembina Pipeline||PPL||50.20||▲2.3||38.60||50.45||D W|
|Inter Pipeline||IPL||21.93||▼-0.8||18.60||25.66||D W|
|Gibson Energy||GEI||23.34||▲1.6||16.15||23.75||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||38.41||▲4.7||30.11||49.08||D W|
|Cenovus Energy||CVE||12.58||▲8.4||8.74||14.84||D W|
|Vermilion Energy||VET||33.80||▲2.5||26.67||49.67||D W|
|Pason Systems||PSI||20.16||▲3.4||17.18||24.57||D W|
|Mullen Group||MTL||12.25||▲2.3||11.26||16.93||D W|
|Secure Energy||SES||8.60||▲5.1||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||40.45||▼-0.9||28.07||47.45||D W|
|Exxon Mobil||XOM||82.49||▲2.1||64.65||87.36||D W|
|Kinder Morgan||KMI||20.05||▲0.2||14.62||20.44||D W|
|Williams Co||WMB||29.11||▲1.4||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||98.63||▲3.6||82.04||133.53||D W|
|Occidental Petro||OXY||68.04||▲2.8||56.83||87.67||D W|
|Anadarko Petro||APC||47.01||▲3.4||40.40||76.70||D W|
|Pioneer Natural Res||PXD||150.68||▼-1.1||119.08||213.40||D W|
|Baker Hughes||BHGE||26.78||▼-3.4||20.09||37.76||D W|
|Ntl-Oilwell Varco||NOV||28.20||▲5.9||24.27||49.08||D W|
|Marathon Petro||MPC||63.47||▲6.0||54.29||88.45||D W|
|Phillips 66||PSX||97.79||▲2.8||78.44||123.97||D W|
|Valero Energy||VLO||86.69||▲2.2||68.81||126.98||D W|