TSX May Start Lower As Commodities Slip

Canada’s benchmark index looked set to open in the negative territory on Wednesday, pressured by falling commodity prices.

Precious metal prices were in the red, hurt by a strong U.S. currency. Action Economics ( AE ) said the dollar rallied following the firmer-than-consensus GDP revision.

Meanwhile, AE also said that the lower oil price and higher gasoline price divergence continued, as the consequences of storm-ravaged on the U.S. Gulf of Mexico coast continued. This apparent dichotomy is being driven by the sudden closure of refineries that account for 23% of U.S. oil refining capacity.

The TSX gained 30 points on Tuesday, with materials in the lead.


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