TORONTO – The Toronto stock market closed marginally lower Tuesday as investors awaited the end result of Wednesday\’s interest rate announcement in the U.S. Fed and kept a close eye on the Greek debt crisis.
The S&P/TSX composite index ended your day down three points at 14,753.05.
South from the border, markets posted a strong advance because the U.S. Federal Reserve began a two-day meeting where its is anticipated to maintain things as they are on rates that have been at historically lower levels since the Great Recession.
However, the gains in New York were not enough to turn back losses from the previous two sessions whenever a breakdown in talks on Greece\’s sovereign debt crisis brought out the bears.
The Dow Jones industrial average closed up 113.31 points at 17,904.48 following the widely watched index suffered triple-digit losses on Friday and again on Monday.
The Nasdaq rose 25.58 suggests 5,055.55, as the S&P 500 added 11.86 points to 2,096.29.
Gareth Watson, vice-president of investment management and research at Richardson GMP Ltd., said the stabilizing of the price of oil around US$60 has already established a mediating impact on the Canadian market.
Developments in Greece and also the Federal Reserve meeting are less essential in the short term towards the health of the Canadian economy than changes in oil and other commodity prices, he explained.
\”To be blunt, there isn\’t a heck of a lot of stuff out there influencing the Canadian market,\” Watson said.
He added that Canada and world markets have grown to be more insulated from a potential Greek exit from the euro as that country\’s debt problems have dragged on over the years.
\”Of course, you will see some type of financial disruption if that is the eventual plan of action,\” he said. \”We have to deal with this day-to-day volatility talking about it, but in the long run I do not see Greece taking down the global sell to any real extent.\”
The loonie ended your day up 0.03 of the U.S. cent at 81.22 cents.
It\’s unlikely the Canadian dollar will go back to parity in the coming months, Watson said, because of the expectation the United States will raise rates nearer to the end of the year.
\”Overall, you can\’t get too bullish around the Canadian dollar if this appears the U.S. will be raising rates long before we will,\” Watson said.
In commodities, the July oil contract was up 45 cents at US$59.97 a barrel. Watson said the supply glut which has cut prices by more than $40 since July 2014 shows no manifestation of abating.
August gold lost $4.90 to close at US$1,180.90 an ounce.