Oil prices fell again as demand continues to wane, the global economy although growing is sputtering at best. There is no clear consensus as to how the world is doing. This is not an across the board movement, even within countries such the United States. Parts of the U.S. are set reopen certain businesses. i.e. movie theatres, inside restaurants, however, states such as California are now recording massive new cases of Covid-19. Quarantine applies to residents who simply come from visiting another state. West Texas Intermediate fell 84 cents to $40.67 USD a barrel, brent crude has broken its 50 day moving average on the down side.
U.S. tech stocks after having a great August have started September on the downside, megacap tech stocks suffered one of their worst days in months on Thursday, dragging down the broader market. Shares of Apple dropped 5.9%, while Microsoft and Amazon lost 5% and 4.6%, respectively. All three stocks have outperformed even the tech-heavy Nasdaq Composite this year, and Apple’s market cap was still above $2 trillion despite Thursday’s slump. The DJIA has fallen 2.5%, whether this is just a correction or simple profit taking we will have to wait and see.
The Canadian dollar is weaker on the back of this mornings’ data and overall negative tone, yet Canada’s economy is doing okay, not great, it depends on what the next couple of months bring. If Canadians are unable to social distance and the numbers go up significantly, there may be another shutdown, but that is a longshot.