HomeBusinessS&P/TSX composite down almost 75 points, U.S. markets also slip

S&P/TSX composite down almost 75 points, U.S. markets also slip

TORONTO –


Markets in Canada and the U.S. slipped for a second day in a row, with losses in vitality, data know-how, utilities and metals main Canada’s important stock index downward.


The S&P/TSX composite index was down 73.38 factors at 19,884.58. The vitality index was down 0.56 per cent, whereas utilities had been down 1.24 per cent, data know-how 1.80 per cent, base metals 1.86 per cent and battery metals 2.35 per cent.


In New York, the Dow Jones industrial common was down 7.51 factors at 33,546.32.The S&P 500 index was down 12.23 factors at 3,946.56, whereas the Nasdaq composite was down 38.70 factors at 11,144.96.


Investors are taking a pause after final week’s surprisingly optimistic inflation numbers out of the U.S., mentioned Vincent Tonietto, a senior vice-president and portfolio supervisor at Fiduciary Trust Canada. He mentioned now traders try to anticipate what may come subsequent, together with on the subject of central banks’ last assembly of the yr.


Investors are trying on the knowledge and asking themselves, “What’s coming up next? And ultimately, what’s the economic cost of achieving those numbers?” mentioned Tonietto.


Both the Canadian and U.S. central banks have signalled one other price hike is coming in 2022, however the query of how massive these hikes will probably be continues to be on traders’ minds, particularly after Canadian inflation knowledge this week was not as sunny because the U.S.


Inflation in Canada stayed regular in October at 6.9 per cent.


On Thursday, a Fed official mentioned the central financial institution might should proceed mountaineering to be able to curb inflation.


Tonietto mentioned after inflation and price hike surprises up to now month, it is best to “expect the unexpected” transferring into the remainder of 2022.


“You still have to be humble and be open-minded about what’s going to happen next,” he mentioned.


On Friday, Canadian producer value knowledge may give the market a greater sense of what is to come back, mentioned Tonietto. Producer value knowledge this week out of the U.S. confirmed final week’s U.S. inflation quantity, exhibiting a slowdown in development.


The Canadian greenback traded for 74.91 cents US, in contrast with 75.13 cents US on Wednesday.


The January crude oil contract was down US$3.60 at US$81.40 per barreland the December pure fuel contract was up 17 cents at US$6.37 per mmBTU.


Oil is sliding on concern of a slowdown within the international economic system, mentioned Tonietto; although China lately loosened a few of its COVID insurance policies, rising instances have traders fearing they are going to tighten once more, affecting demand for oil.


The December gold contract was down US$12.80 at US$1,763.00 an oz and the December copper contract was down 9 cents US$3.69 a pound.


– With recordsdata from The Associated Press


This report by The Canadian Press was first revealed Nov. 17, 2022

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