WINNIPEG, May 3 (MarketsFarm News) – The following is a glance at the news moving markets in Canada and globally.
– A recent poll from Reuters showed that almost 40 currency analysts believe the Canadian dollar will strengthen over the coming year, buoyed largely by higher oil prices. Though the dollar has fallen 3 per cent since February, it is losing its tight link to the performance of stocks indexes. This poll follows the Bank of Canada’s announcement to not raise interest rates during a sluggish economy. “If you look at where the currency stands right now you could argue it should be a little cheaper because of the interest rate differentials … but a little bit stronger historically on where oil is,” said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets. “The two are very finely balanced.”
– Canadian pipeline titan TransCanada Corp. reported a profit of C$1 billion in the last quarter. This report beats analysts’ previous estimates, as earnings from its U.S. natural gas pipelines rose 22 per cent. Chief executive Russ Girling told the Canadian Press the increase was due to the strong performance of the company’s legacy assets, along with roughly $5.3 billion of growth projects that were placed into service in the quarter.
– 3.5 million people evacuated India and Bangladesh ahead of Cyclone Fani, a category 4 storm with strong winds and heavy rain. “We have thankfully received no reports of casualties from Odisha after the cyclone’s landfall,” said N.C. Marwah, a member of the Indian National Disaster Management Agency. “The storm is now moving north and we are expecting it to hit West Bengal later today, for which preparations are ongoing.” Odisha, a state in India, is home to several aluminum plants, power plants, coal mines, and an oil refinery. The area is accustomed to being battered by cyclonic storms according to reports.
– A recent report from the United States Department of Labor said job growth surged in April, and the unemployment rate dropped to 3.6 per cent, the lowest in more than 49 years. The monthly jobs report attributed the decline in the unemployment rate to people leaving the labour force, suggesting some slack in the jobs market, according to Reuters. “Employment gains are strong enough to dispel any immediate concerns over the health of the economy, while wage gains are not strong enough to force the Federal Reserve’s hand to tighten the policy stance,” said Harm Bandholz, chief U.S. economist at UniCredit Research in New York.