The Daily Chase: Big six banks raise prime rates; Oil under pressure
BNN Bloomberg
Well, that didn’t take long. The Big Six banks – not to mention Equitable and Desjardins – swiftly followed the Bank of Canada’s lead and raised prime rates by a full one per cent to 4.70%.
RATE FEARS WEIGH ON MARKETS
Sticking with the rate theme, we’re looking at a broadly negative day for global equity markets. Futures south of the border are pointing to further losses when the opening bells ring at 9:30 a.m. ET, with concerns over another significant rate hike from the U.S. Federal Reserve and recessionary fears looming large. Those rate expectations are also playing into the currency trade – the Bloomberg U.S. Dollar index hit a record high earlier this morning as traders bet on further rate increases boosting the greenback. While it’s a U.S. dollar story at heart, worth noting the loonie is now trading at its lowest level against the greenback since late 2020, which has further implications for inflation on this side of the border due to Canada’s trading relationship with the U.S.
OIL PLUMBS 5-MONTH LOWS
