Canadian dollar declines in European trading
CTV.ca | Canadian dollar declines in European trading
Updated Mon. Nov. 12 2007 8:50 AM ET
The Canadian Press
TORONTO -- The Canadian dollar lost close to two cents against the U.S. dollar in European trading as the American currency recovered some of its losses last week against the loonie, as well as against the euro and the British pound.
Wall Street stock index futures were narrowly mixed, while the Canadian stock market got a jolt Monday morning as International Business Machines Corp. announced a US$5-billion deal to take over Canadian business software provider Cognos (TSX:CSN).
The Canadian dollar was at 104.26 cents US early in the afternoon in London, down from 106.07 at Friday's North American close. The euro and sterling also were down sharply from last week's highs in moves that traders attributed to profit taking. The Japanese yen, however, hit an 18-month high against the U.S. dollar.
Asian stock markets fell sharply, following through on last week's steep losses on Wall Street amid ongoing concerns about U.S. mortgage problems.
"Basically, the subprime loan issue still drags on, and there is no prospect of what can end the problem,'' commented Shinichi Ichikawa, chief strategist at Credit Suisse in Tokyo.
"As for the U.S. economy, the risk of recession is increasing toward the next year amid the lingering subprime loan problems.''
Japan's benchmark Nikkei index fell 2.5 per cent Monday, dropping below 15,000 for the first time since July 2006. Hong Kong's Hang Seng dropped 3.9 per cent and South Korea's Kospi lost 3.4 per cent.
In Tokyo, Honda Motor Co. fell 3.6 per cent, Toyota Motor Corp. shed 2.8 per cent and Sony Corp. dropped 2.6 per cent on fears that a stronger yen cuts exporters' earnings.
In Hong Kong, bank HSBC fell 2.8 per cent on worries about its exposure to the U.S. housing collapse.
Chinese financial shares were also lower after China's central bank raised the reserve requirement for banks by half a percentage point to 13.5 per cent in its latest tighter-money move.
In other news from China, the country's trade surplus jumped in October to a new all-time monthly high of US$27 billion, despite pledges to restrain export growth.
Oil prices were down by more than US$1 a barrel after reports that the Organization of Oil Exporting Countries will discuss increasing output. Saudi Arabia's oil minister said Sunday the oil cartel would discuss boosting output to restrain prices when it meets later this year. Bond markets in North America are closed for the Remembrance Day holiday.
CTV.ca | Canadian dollar declines in European trading
Updated Mon. Nov. 12 2007 8:50 AM ET
The Canadian Press
TORONTO -- The Canadian dollar lost close to two cents against the U.S. dollar in European trading as the American currency recovered some of its losses last week against the loonie, as well as against the euro and the British pound.
Wall Street stock index futures were narrowly mixed, while the Canadian stock market got a jolt Monday morning as International Business Machines Corp. announced a US$5-billion deal to take over Canadian business software provider Cognos (TSX:CSN).
The Canadian dollar was at 104.26 cents US early in the afternoon in London, down from 106.07 at Friday's North American close. The euro and sterling also were down sharply from last week's highs in moves that traders attributed to profit taking. The Japanese yen, however, hit an 18-month high against the U.S. dollar.
Asian stock markets fell sharply, following through on last week's steep losses on Wall Street amid ongoing concerns about U.S. mortgage problems.
"Basically, the subprime loan issue still drags on, and there is no prospect of what can end the problem,'' commented Shinichi Ichikawa, chief strategist at Credit Suisse in Tokyo.
"As for the U.S. economy, the risk of recession is increasing toward the next year amid the lingering subprime loan problems.''
Japan's benchmark Nikkei index fell 2.5 per cent Monday, dropping below 15,000 for the first time since July 2006. Hong Kong's Hang Seng dropped 3.9 per cent and South Korea's Kospi lost 3.4 per cent.
In Tokyo, Honda Motor Co. fell 3.6 per cent, Toyota Motor Corp. shed 2.8 per cent and Sony Corp. dropped 2.6 per cent on fears that a stronger yen cuts exporters' earnings.
In Hong Kong, bank HSBC fell 2.8 per cent on worries about its exposure to the U.S. housing collapse.
Chinese financial shares were also lower after China's central bank raised the reserve requirement for banks by half a percentage point to 13.5 per cent in its latest tighter-money move.
In other news from China, the country's trade surplus jumped in October to a new all-time monthly high of US$27 billion, despite pledges to restrain export growth.
Oil prices were down by more than US$1 a barrel after reports that the Organization of Oil Exporting Countries will discuss increasing output. Saudi Arabia's oil minister said Sunday the oil cartel would discuss boosting output to restrain prices when it meets later this year. Bond markets in North America are closed for the Remembrance Day holiday.
