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Canadian dollar rises as investors weigh U.S. stimulus prospects - Reuters News

Canadian dollar rises as investors weigh U.S. stimulus prospects - Reuters News

Canadian dollar rises as investors weigh U.S. stimulus prospects - Reuters News

Canadian dollar gains 0.1% against the greenback

Loonie trades in a range of 1.2687 to 1.2736

Price of U.S. oil falls 0.2%

Canadian bond yields ease across flatter curve

TORONTO, Jan 25 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Monday as investors weighed the prospect of additional U.S. economic stimulus, with the currency steadying after a large decline on Friday.

The loonie CAD= was trading 0.1% higher at 1.2717 to the greenback, or 78.63 U.S. cents, having traded in a range of 1.2687 to 1.2736.

On Friday, the Canadian currency weakened 0.8%, its biggest decline in nearly three months, as new COVID-19 restrictions in China weighed on oil prices. Oil is one of Canada's major exports.

U.S. crude CLc1 prices dipped 0.2% to $52.15 a barrel on Monday as worries about demand due to renewed lockdowns competed with support from U.S. stimulus plans. (Full Story)

Officials in President Joe Biden's administration tried to head off Republican concerns that his $1.9 trillion pandemic relief proposal was too expensive on a Sunday call with Republican and Democratic lawmakers. (Full Story)

Biden and Canadian Prime Minister Justin Trudeau agreed to meet next month, the prime minister's office said on Friday following a call between the two leaders in which they vowed to join forces to combat the pandemic in North America. (Full Story)

Canadian government bond yields were lower across a flatter curve in sympathy with U.S. Treasuries. The 10-year CA10YT=RR eased 2.1 basis points to 0.825%, extending a pullback from a 10-month high on Thursday at 0.892%.

Canada's GDP data for November is due on Friday, which could help guide interest rate expectations.

Last week, the Bank of Canada held its key overnight interest rate at 0.25%, saying the arrival of a COVID-19 vaccine and stronger foreign demand is brightening the outlook for the Canadian economy in the medium term.

Canada Dec factory sales seen rising 0.6% - Statscan flash estimate - Reuters

OTTAWA, Jan 25 (Reuters) - Canadian manufacturing sales in December likely gained 0.6%, led by wood products and transportation equipment, after declining 0.6% in November, Statistics Canada said in a flash estimate released on Monday.

Statscan said the estimate had been calculated based on responses received from 62.4% of companies surveyed. The average final response rate for the survey over the past 12 months has been 89.6%, it added.

Nasdaq opens at record high ahead of big-tech earnings - Reuters News

Jan 25 (Reuters) - The Nasdaq opened at a record high on Monday as markets geared up for a busy week of earnings from mega-cap technology firms, while the Dow and S&P 500 came under pressure from a decline in Merck's shares.

The Dow Jones Industrial Average .DJI fell 7.1 points, or 0.02%, at the open to 30989.85. The S&P 500 .SPX rose 10.2 points, or 0.27%, at the open to 3851.68​, while the Nasdaq Composite .IXIC rose 138.1 points, or 1.02%, to 13681.211 at the opening bell.

German business morale hits six-month low as virus halts recovery - Reuters News

Business morale at lowest since July

Second virus wave hits current conditions and expectations

Expectations fall despite forecast rise

Economy to stagnate in Q1, Ifo economist says

Economy likely to reach pre-crisis level in mid-2022 -ministry

By Paul Carrel and Rene Wagner

BERLIN, Jan 25 (Reuters) - German business morale slumped to a six-month low in January as a second wave of COVID-19 halted a recovery in Europe's largest economy, which will stagnate in the first quarter, the Ifo economic institute said on Monday.

Ifo said its business climate index fell to 90.1 from an upwardly revised reading of 92.2 in December. A Reuters poll had forecast a January reading of 91.8.

"The second Corona wave has temporarily ended the recovery of the German economy," Ifo President Clemens Fuest said in a statement.

Chancellor Angela Merkel and state leaders agreed last week to extend a lockdown until mid-February as Germany, once seen as a role model for fighting the pandemic, struggles with a second wave of infections. (Full Story)

Ifo economist Klaus Wohlrabe told Reuters the economy would stagnate in the first quarter of the year, adding: "The German economy is starting the year with little confidence."

The economy is likely to reach its pre-pandemic levels in mid-2022, according to a draft document prepared by the economy ministry and seen by Reuters on Monday. (Full Story)

In a telling sign of corporate nervousness, Ifo's expectations index fell to its lowest level since June, confounding expectations for a rise.

Unprecedented government rescue and stimulus measures helped lessen the shock of the pandemic in Germany last year, when the economy shrank by 5.0%, less than expected and a smaller contraction than during the global financial crisis. (Full Story)

But the renewed lockdown measures are suppressing economic activity and confidence. Ifo's index on current conditions fell to its lowest since September. (Full Story)

"Fear is back," wrote ING economist Carsten Brzeski. "It will take more momentum in the vaccination schemes and a further reduction in the number of infections before the economy can take off again. It currently looks as if it will take at least until spring time before this will be the case."

Highlighting the impact of the COVID-19 pandemic on German industry, carmaker Volkswagen VOWG_p.DE said on Friday profit almost halved last year because of the pandemic, but a rebound in premium car sales in China and stronger deliveries in the fourth quarter helped keep it in the black.

The Federal Statistics Office will publish gross domestic product figures on Friday for the fourth quarter, when some lockdown measures had already been implemented. The statistics office said earlier this month growth probably stagnated in the fourth quarter. (Full Story)

The government expects the economy to grow by 3% this year, a government official told Reuters on Friday, a sharp downward revision from last autumn's estimate of 4.4% caused by November's imposition of a second coronavirus lockdown.

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