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Highlights
- China's economy had slower-than-expected growth in the third quarter of 2021.
- Air Canada flights from Vancouver have been banned in Hong Kong.
- HEXO Corp. (TSX:HEXO) could be hunting for a new chief executive officer as its co-founder Sebastien St-Louis has left the company.
Weak gold prices caused the futures for Canada's main stock index to retreat from the index's record high in the previous session. In addition, global equities dipped on Monday, October 18, as the dour economic data showed that China's economy had slower-than-expected growth in the third quarter of 2021.
That said, let's take a look at a few developments that could influence the investors in Canada.
How will investors respond to Air Canada's ban?
Air Canada (TSX:AC) flights from Vancouver have been banned in Hong Kong after a passenger tested positive for coronavirus. The Chinese special administrative region said on Friday, October 15, that a person on Air Canada flight 7 from Vancouver to Hong Kong had tested positive for coronavirus on October 13.
The ban on flights from Vancouver to Hong Kong has been imposed until October 29, however, the ban is only on passenger flights. Cargo flights will continue to operate as scheduled and passengers who had booked flights are being rebooked and offered alternatives such as traveling later.
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It would be interesting to see at market open how investors respond to the news. At market close on October 15, the Air Canada stock had closed 0.6 per cent higher at C$ 23.07 per share.
OPEC+ fails to meet output targets
Oil prices could surge further as the Organization of Petroleum Exporting Countries and its allies (OPEC+) have failed once again to pump enough oil to meet their targets. As a result, the supply deficit will continue amid an expected economic recovery as the world reopens amid increased vaccinations for COVID-19.
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According to reports, OPEC+ cut its production 15 per cent more than planned in September. Earlier in August and July, it had cut by 16 and nine per cent, respectively. Azerbaijan, Nigeria, and Angola have reportedly failed to raise their output due to some issues like lack of investment and exploration.
An energy crisis has engulfed Asia and Europe, and the pressure is rising on the OPEC+ to accelerate the pace of oil supply. It would be interesting to see how the oil and gas sector in Canada responds to this news.
HEXO Corp's co-founder exits the company
HEXO Corp. (TSX:HEXO) could be hunting for a new chief executive officer as its co-founder Sebastien St-Louis left the company abruptly. HEXO Corp. is a Cannabis producer and is based out of Ottawa.
The company said on October 18 that Mr. St-Louis' exit is with immediate effect and that he has left without a successor in place. In addition, HEXO's chief operating officer Donald Courtney is also resigning but will stay in the company until his successor is chosen.
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HEXO shares trade on the Toronto Stock Exchange (TSX) and at market close on October 15, the cannabis producer's shares had declined by 54 per cent year-to-date (YTD).
Bottom line
The equities market offers a chance to the investors to grow their money, however, it could also reduce your money if the market enters a bearish zone, or you don’t research before investing in the market.
