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Markets

The volatility in global markets seems to never end. As indexes continue to trend downward, analysts weigh in on three key indicators for the year ahead.



Oil

“You have to believe that there is a possibility that you will not necessarily go back above $100, you know, ever.”

—Ian Taylor, CEO, Vitol Group



Stocks

“European markets after initially opening higher, have been led sharply lower by banking shares, a number of which are hitting multiyear lows. The disappointing earnings across the sector from the big U.S. firms to Credit Suisse and Deutsche Bank in Europe alongside the ugly spectre of negative interest rates have seen investors significantly reassess the chance of an earnings turnaround after years of regulatory fines for past misdeeds.”

—Michael Hewson, chief analyst, CMC Markets



Loonie

“Most [Canadian dollar] drivers are suggestive of weakness as we consider WTI’s decline back toward $30; and the shift in risks surrounding relative central bank policy following Friday’s dual employment release – with U.S. wage growth suggesting tightening labor markets and Canada’s unemployment rate rising to a fresh multi-year high of 7.2 per cent.”

—Eric Theoret, foreign exchange strategist, Bank of Nova Scotia