S&P/TSX composite down more than one per cent, U.S. markets also fall

TORONTO –

Canada’s important inventory index fell multiple per cent Wednesday, with broad-based losses led by the vitality sector, whereas U.S. markets additionally fell by multiple per cent.

The S&P/TSX composite index was down 222.55 factors to 19,284.10 on the primary buying and selling day in Canada after the Christmas vacation (U.S. markets had been open Tuesday).

In New York, the Dow Jones industrial common was down 365.85 factors, or 1.10 per cent, to 32,875.71.The S&P 500 index was down 46.03 factors, or 1.20 per cent, to three,783.22, whereas the Nasdaq composite was down 139.94 factors, or 1.35 per cent, to 10,213.29.

Energy shares had been a significant factor within the TSX’s dangerous day, mentioned Michael Currie, senior funding adviser at TD Wealth, with the vitality index down 2.39 per cent.

There are some competing news objects affecting oil costs, he mentioned — news that China is additional decreasing COVID guidelines is nice for oil costs, however Russia refusing to promote to nations implementing a worth cap on its oil is having a downward impact on costs.

However, oil has been having a very good run, so one down day is not horrible news, mentioned Currie. And vitality shares this 12 months have far outpaced the value of oil, he famous, with the S&P/TSX capped vitality index gaining nearly 50 per cent to date this 12 months, primarily carrying the Canadian market in 2022.

The Canadian greenback traded for 73.72 US in contrast with 73.51 cents US on Friday.

Wednesday was the final day for tax-loss promoting, the place buyers dump investments that carried out poorly in the course of the 12 months to offset capital features, mentioned Currie. That has seemingly contributed to the downward day markets are having, he mentioned.

“So anybody who is thinking of selling — today is the day,” mentioned Currie.

Tax-loss promoting is probably going extra aggressive this 12 months, he added, as 2022 was a worse 12 months on the markets than 2021.

In truth, the S&P 500 is on monitor to have its worst 12 months since 2008.

“It wasn’t a bad year. It was a really bad year,” mentioned Currie.

The Nasdaq is probably going seeing loads of that promoting given the 12 months tech shares have had, he mentioned.

December hasn’t been a very good month, when it is usually top-of-the-line months of the 12 months for markets, mentioned Currie.

“It’s been a bear market for a while now … we haven’t had any really good stretches this year,” he mentioned.

The February crude contract was down 57 cents at US$78.96 per barreland the February pure gasoline contract was down 43 cents at US$4.69 per mmBTU.

The February gold contract was down US$7.30 at US$1,815.80 an ounceand the March copper contract was down lower than a cent at US$3.84 a pound.

This report by The Canadian Press was first printed Dec. 28, 2022.