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Canadian-Tracking ETFs Rise on Oil Cues Despite Low Manufacturing

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EWC trades bullish, taking cues from oil rally

Canadian markets rallied for the third straight session on June 7, 2016, along with other commodity currency peers. This happened as crude oil (UWTI) prices rose during the day to more than $50 per barrel to reach the highest level since October 2015.

The gain of more than 1% in the iShares MSCI Canada (EWC) got the overall rally this week to more than 4%. Investors are bullish over the consumption of oil, which has supported a rally in crude oil (UCO) to almost double its value since the bearish winter months. The iShares MSCI Canada (EWC) has risen by more than 20% this year following a recovery in commodity prices.

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Ivey PMI falls sharply

Manufacturing activity in Canada saw a steep decline as the Ivey PMI (Purchasing Managers’ Index) fell to 49.4 in May from 53.1 in April. Even though the figures released below expectations of 51.5, the Market remained passive against the release as investors concentrated on the oil rally and its effect on recovery in commodity-dependent economies.

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