Moreover, much of
the weakness in energy prices has already been reflected in downward revisions to Canadian earnings, implying less pressure on forward - looking multiples.
Not exact matches
Still, pockets of
weakness remain as lower oil
prices continue to hinder investment
in the
energy industry and a firm dollar restrains global sales.
Concerns over
energy - induced
weakness in headline PCE, as well as non-oil import
prices» pass - through impacts on Core PCE had dominated recent Federal Reserve policy deliberations.
Even if China's debt and real estate bubbles don't pop, resulting
in a global recession, slowing economic growth from China could have a detrimental effect on long - term
energy prices and result
in prolonged
weakness in the entire
energy sector, including oil services suppliers such as U.S. Silica.
Temporary factors, including the damping effect of higher food and
energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events
in Japan, appear to account for only some of the recent
weakness in economic activity.
The
energy sector's valuation compression was based on the surprising
weakness in oil
prices, which are a key determinate of
energy company revenue and profitability.