December 3, 2019

Tuesday was another negative day in the markets due to deteriorating hopes for a near-term “Phase I” trade deal between China and the U.S.

The S&P 500 was down 0.7% and Toronto was down 0.5%.

FedEx, which certainly relies on increased trade for growth was down 4.4%. Trucking company TFI International was down 3.5%. And Linamar was down 1.3%.

Shopify was notable in the opposite direction rising 5.95%. 

November auto (light vehicle) sales for Canada were reported today. They were almost exactly unchanged overall versus last year. But last November was a weak month. It appears that auto sales have stabilized after a long string of decreases. Light trucks (which includes SUVs) continue to dominate as sedan sales continue to decline. Fiat Chrysler sales were up almost 11% and that is good news in regards to AutoCanada as Fiat Chrysler is their biggest brand.

There has been good news for Alberta as work has started in earnest on the installation of the TransMountain pipeline. This is good news for jobs and helps the economy n Alberta.

And the Canadian portion of Enbridge’s line 3 has come into operation this week. I have not seen any news on whether the oil is moving under the rail contracts that the NDP government committed to (shipments were supposed to start as early as July). The new government has been trying to sell those contracts at loss but meanwhile I have not seen any news on whether oil is moving on those contracts. But overall, there is more oil moving given line 3 and other developments.  

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