S&P/TSX composite up nearly 300 points

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TORONTO –


Canada’s fundamental stock index closed up virtually 300 points Monday forward of Statistics Canada releasing its newest inflation information on Wednesday, whereas U.S. markets had been additionally up.


The S&P/TSX composite index was up 294.67 points at 18,621.02.


In New York, the Dow Jones industrial common was up 550.99 points at 30,185.82. The S&P 500 index was up 94.88 points at 3,677.95, whereas the Nasdaq composite was up 354.41 points at 10,675.80.


“We’re seeing a rally to kick off the week as we see some stabilization in the bond market,” stated Angelo Kourkafas, an funding strategist at Edward Jones. “Bond yields are slightly lower, we have seen the U.S. dollar pull back against other major currencies.”


The Canadian greenback traded for 72.83 cents US in contrast with 72.17 cents US on Friday.


News that the British authorities pulled a reversal on its suite of tax cuts helped the pound rebound, he stated.


“That was the catalyst for some positive sentiment globally,” stated Kourkafas.


Earnings from the Bank of America had been higher than anticipated, Kourkafas famous, as third-quarter earnings season kicks off.


“So far there is the theme of resiliency in corporate profits, as at the same time, expectations have been lowered heading into the earning season,” he stated. “The fact that we have low expectations and results so far seem to be OK despite the very challenging economic backdrop, that is providing some relief.”


For earnings season in Canada, “investors are going to be looking at results from Canadian banks to gauge the health of the economy and the consumers,” he stated.


Canadian inflation information for September is popping out on Wednesday. Though latest U.S. inflation was hotter than traders had hoped, if the Canadian inflation numbers present indicators of slowing that will imply a smaller-than-anticipated charge hike from the Bank of Canada, stated Kourkafas.


However, he stated a 75-point hike continues to be very a lot an choice, relying on the inflation information and different components.


The Bank of Canada enterprise and shopper surveys that got here out Monday had been per the concept the central financial institution will not be performed elevating charges, stated Kourkafas.


“In our view, we’re getting closer to the end of the tightening campaign for the Bank of Canada than the beginning.”


The December crude oil contract was down 12 cents at US$84.53 per barrel and the November pure fuel contract was down 45 cents at US$6 per mmBTU.


The December gold contract was up US$15.10 at US$1,664 an oz and the December copper contract was down nearly a penny at US$3.42 a pound.


This report by The Canadian Press was first printed Oct. 17, 2022

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