The TSX is down 25 points with energy and info tech posting the biggest losses. Energy has shed 1.42% so far, pulled down by lower oil prices . Info tech is down 0.61%.
Crude oil is now trading at US$ 49.19, down 1.22% — the markets are doubtful about the OPEC plan to extend the 1.8 million barrel-per-day supply cut, while U.S. shale production is also expected to keep expanding. Meanwhile, Kinder Morgan’s Trans Mountain expansion project ran into uncertainty today after the provincial Green Party struck a deal to support the New Democrats. The two parties have opposed the pipeline. Kinder Morgan Canada (KML.TO) debuted on TSX at $ 16.25 and touched $ 16, below an expected $ 16.50 open price and also lower than the $ 17 price in its IPO.
Meanwhile, BNN reports that Prime Minister Trudeau is standing by the decision to approve the Trans Mountain pipeline expansion.
StatsCan data showed that producer prices rose for the eighth month in a row (+0.6%) in April due to higher costs for energy and petroleum products. Compared to a year ago, prices were up 6.3%, the largest annual increase since October 2011.
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