Canada’s fundamental stock index was up for the sixth day in a row regardless of declines within the base metals, telecom and battery metals indexes, whereas U.S. markets posted sturdy good points.
The S&P/TSX composite index was up 119.08 points at 19,471.19.
In New York, the Dow Jones industrial common was up 828.52 points, or 2.59 per cent, at 32,861.80. The S&P 500 index was up 93.76 points, or 2.46 per cent, at 3,901.06, whereas the Nasdaq composite was up 309.77 points, or 2.87 per cent, at 11,102.45.
U.S. markets are reacting to a mixture of earnings reviews and weaker than anticipated financial information, particularly on the housing facet, mentioned Kevin Headland, chief funding strategist at Manulife Investment Management.
“Some of the inflation knowledge that got here in was actually at expectations,” he mentioned. “So I believe the market is rallying.”
Markets in Canada are extra of a combined bag, mentioned Headland, with commodities and supplies dragging the index down. He added that GDP knowledge launched Friday did not carry any main surprises, particularly after the Bank of Canada’s revised estimates.
“The Canadian fairness market would not sometimes transfer as a lot on financial knowledge domestically as a lot because the U.S. market does,” he mentioned.
“We do not have the tailwinds and among the U.S. names to maintain tempo with the U.S. market at the moment.”
The Canadian greenback traded for 73.45 cents US,in contrast with 73.82 cents US on Thursday.
Overall, it has been an excellent October, mentioned Headland. “The method September ended set up October for a good rebound.”
Markets might turn into much less risky within the weeks and months to come back as each Canada and the U.S. close to the tip of the central banks’ tightening cycles, mentioned Headland.
Earnings have additionally been coming in broadly higher than anticipated, he added, although there are lots of corporations left to report within the coming weeks.
“Next week ought to be a fairly busy week,” he mentioned, with the U.S. (*22*) fee announcement anticipated alongside extra earnings reviews and labour knowledge being launched in each Canada and the U.S.
“Depending on what the labour announcement is, relative to how the Fed talks about their coverage, we would get some volatility to finish the subsequent week
— all relies upon in the event that they’re in line,” he mentioned. “We anticipate the Federal reserve to not change their tone … however we’re getting nearer to the terminal fee, which I believe the market appreciates.”
The December crude oil contract was down US$1.18 at US$87.90 per barrel and the December pure gasoline contract was down 19 cents at US$5.68 per mmBTU.
The December gold contract was down US$20.80 at US$1,644.80 an oz. and the December copper contract was down 9 cents at US$3.43 a pound.
This report by The Canadian Press was first printed Oct. 28, 2022.