The energy shares in the Candian market dropped as crude oil slumped by 0.8 percent. Teck Resources Ltd slid 6 percent after reporting its poor performance in the coal market. In spite of being the largest diversified miner in Canada, the stocks of Teck have slumped by 17 percent in last 1 year. Canada’s largest natural gas producer Encana Corp. tumbled 2.1 percent to arrive at C$19.28. Cenovus Energy Inc. also retreated 1.4 percent to stop at C$32.90. The Standard & Poor’s/TSX Composite Index slid 5.67 points to 12,755.92.
The Housing Sector
The housing sector in Canada has also not performed well. Though latest data shows that the building permits in Canada touched an all time high level in 2012, other statics show that new home prices in the country rose by 2.3 percent in December when compared to the previous year. In spite of a surge in the number of housing permits the earnings in the housing sector have been low in the previous year. As a result their stocks also exhibited poor performance.
Forex Traders fear losses
Foerex traders who wanted to earn some profits by trading in the Canadian markets now fear of incurring losses. Many are opining that it is time to watch the near term earnings. It is true that the rise in earnings, much of whatever has been exhibited till now, is mainly because of cost cutting and not due to increase in sales. The fall of the price of crude oil and the low performance of the housing sector in Canada has dropped forex traders in a precarious position.
Though analysts are not ready to see this performance of the Canadian market in light of the global economic crisis, the impact of the crisis cannot be totally disregarded. Though US has managed to avert the Fiscal cliff at least for the time being, the economy in US is in no good shape. The debt crisis in Europe is far from over. All these are impacting the economy of every country and Canada is of no exception. As long as the economic crisis continues forex traders will have to fight with unpredictable market conditions. This may be a bit tough but it is the only way of surviving in the business.