Canadian dollar slightly higher, commodities rise, U.S. financial markets shut

TORONTO – The Canadian dollar was slightly higher Tuesday amid rising commodity prices.

The loonie gained 0.04 of a cent to 99.96 cents US after closing below parity with the U.S. currency Monday for the first time since early August.

Analysts expected the session to be relatively quiet as superstorm Sandy continues to play havoc with American financial markets, which were closed for a second day.

Originally, the NYSE planned to close just its exchange floor and allow traders to buy and sell stock electronically. Then it decided to shut down electronic trading, too. The NYSE said it was worried about putting staff needed to help run the electronic trading in danger.

The NYSE has said it intends to resume trading Wednesday through its Arca electronic trading system if floor trading is not possible.

The Nasdaq and bond markets in the U.S. were also closed for a second session.

The CME Group also cancelled floor trading in New York Chicago but commodity trading carried on electronically.

December crude gained 43 cents to US$85.97 a barrel. At the same time, there are questions about where crude prices are headed given the effect on refineries from the storm. The biggest operations in the northeastern U.S. have shut down or cut back sharply and analysts said the impact on oil demand could be significant.

Metal prices advanced with December copper ahead three cents to US$3.52 a pound while December gold bullion rose $5.50 to US$1.714.12 an ounce.

The storm is also playing havoc with economic data.

The U.S. Conference Board is delaying the release of its consumer confidence index for October until Thursday. The Conference Board said it decided on the delay to help assure the safety of its staff and people who follow the index. The storm has left transportation difficult or impossible in many places and millions of people were without power.

There was also doubt whether the U.S. Labour Department will release its October non-farm payrolls report on Friday.

Dozens of U.S. companies have also postponed their quarterly earnings reports.