The Canadian trade deficit in March widened to a record $3.41 billion far surpassing estimates of a $1.4 billion C$ shortfall. All figures in this article are in Canadian dollars.
This shows the extent of the damage low oil prices and commodity prices are having on Canada’s economic front.
The Canadian dollar sank on the news as exports to the United States fell 6.3 percent to a 22 year low of $1.53 billion Canadian dollars. The United States is Canada’s largest trading partner. 75% of all trade is with the United States.
March exports fell by 4.8 percent to $40.99 billion which is the lowest in more than two years. Shipments declined in 10 of 11 sectors, led by motor vehicles and parts, consumer goods and metal and non-metallic products. This will affect a large number of Canadian Stocks including Magna International Stock (MG) which is down 2.14% today.
Magna International Stock Chart – 6 Months
The 52 week low for the stock was Feb 9 when the stock reached $42.09. It is currently trading at 8.9 times price to earnings and 6.1 times price to cash flow which is quite moderate. Downside in the stock should stay above the 52 week low for the present time. Magna Stock (MG) is in a downtrend.
Imports and Exports Decreased
Both important and exports decreased. Imports decreased by 2.4 percent to C$44.40 billion.
Canadian Bank Stocks
This will also mean more weakness for Canadian Bank Stocks over the coming weeks, especially Bank Of Nova Scotia Stock which has a large Caribbean and Central American presence.
Bank of Nova Scotia Stock is down 2% today to $62.16.
Metals and Gold Stocks
Mining stocks are lower this morning with Teck Resources Ltd (TCK.B) down over 2% and Barrick Gold Corp Stock (ABX) down 2.25% to $22.75.
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