The Canadian dollar has reached its nine-month high

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Ross Marowits, The Canadian Press

Published Friday, 12 July 2019 12:30 EDT

Last Updated Friday, 12 July 2019 17:31 EDT

TORONTO – While the US markets have reached record levels, the main Canadian stock index ended the week on the downside when the loonie reached its nine-month high.

The S & P / TSX composite index closed 39.78 points at 16.488.12 after reaching an intraday high of 16.525,70.

Seven of the eleven main sectors have declined, driven by a 4.5% drop from the heavy health sector for cannabis.

A fifth consecutive day of stock losses by CannTrust Holdings Inc., following the discontinuation of all sales and shipments of cannabis-based products in a Health Canada survey, has spread to other manufacturers of cannabis, including Canopy Growth Corp., Cronos Group Inc. and Aurora Cannabis Inc.

CannTrust shares fell 17.3% on Friday and were cut almost in half by Monday.

Shine is coming out of the cannabis sector, said Patrick Blais, senior portfolio manager for Manulife Asset Management.

"Many investors believe these names are overrated," he said in an interview. "Obviously they will be volatile, they are still stories of growth and the growth stories can move quite violently during the ascent, during the descent."

Shopify Inc. has reduced technologies, while utilities, basic necessities and financials have also decreased.

Energy was marginally lower as the August crude oil contract increased by one cent to 60.21 US dollars a barrel and the August natural gas contract increased by 3.7 cents to 2.45 US dollars for mmBTU.

Consumer discretionary goods, industrials, materials and buildings ended the day higher.

The shares of several miners have increased, including Yamana Gold Inc. and Barrick Gold Corp, such as the price of the gold rose. The August gold contract rose by US $ 5.50 to $ 1.412,20 per ounce and the September copper contract rose 0.7% to $ 2.69 a pound.

The Canadian dollar traded at an average of 76.70 cents in the United States, the highest level since October and compared to an average of 76.51 cents in the US on Thursday.

The loonie has gained strength since the perception of the Canadian economy has improved and the Bank of Canada's decision not to follow the US Federal Reserve in reducing interest rates has supported the Canadian currency, said Blais .

Meanwhile, he said that the US economy is seen in deterioration.

US markets hit record highs on Friday while the prospect of interest rate cuts solidified with comments from the Federal Reserve Bank governor of Chicago that the central bank's focus is on preventing deflation .

"In reality it was quite specific, so it seems that they are telling the market that" we are worried about low inflation and this is the emphasis of our mandate and regardless of other concerns, "added Blais.

In New York, the Dow Jones industrial average increased by 243.95 points to 27.332.03, a record close to and slightly lower than the intraday peak of 27.333,79.

The S & P 500 index rose 13.86 points to 3.013.77, a little lower than the maximum at the start of the day, while the Nasdaq composite rose 48.10 points to 8.244 .14, even a little & # 39; below the maximum intraday record.

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