S&P/TSX composite unchanged Tuesday, U.S. markets mixed

TORONTO –

Canada’s most important inventory index was largely unchanged Tuesday as weak spot in vitality was offset by good points in telecom and industrials, whereas U.S. markets have been blended.

The S&P/TSX composite index was down 2.03 factors at 20,629.55.

In New York, the Dow Jones industrial common was up 104.40 factors at 33,733.96. The S&P 500 index was down 2.86 factors at 4,016.95, whereas the Nasdaq composite was down 30.14 factors at 11,334.27.

Markets are anticipating a pivot in rate of interest insurance policies from central banks quickly, mentioned Kevin Burkett, portfolio supervisor at Victoria-based Burkett Asset Management.

The Bank of Canada is extensively anticipated to announce 1 / 4 of a proportion level hike Wednesday after which pause, whereas the Federal Reserve can be anticipated to be close to the top of its cycle.

“Certainly, the tone is changing,” mentioned Burkett. “And that’s what’s driven markets higher in the first few weeks of this year.”

He additionally expects the commentary from central banks will start to shift, with the Fed tempering a number of the inflation-fighting rhetoric that outlined its place final yr.

U.S. earnings continued to roll in on Tuesday, with some companies lacking estimates.

Markets are anticipatory, so whereas earnings final yr have been good whilst markets declined, now the decline is starting to indicate in firm outcomes, mentioned Burkett. He expects it will proceed as earnings start to replicate rate of interest hikes and their results on completely different elements of the economic system, and added that outcomes this yr are prone to diverge considerably between firms and sectors.

The Canadian greenback traded for 74.79 cents US in contrast with 74.73 cents US on Monday.

The March crude contract was down US$1.49 at US$80.13 per barrel and the March pure gasoline contract was down 17 cents at US$3.06 per mmBTU.

Energy weighed on the TSX Tuesday, with the vitality index down a couple of per cent. The value of oil was down on continued uncertainty concerning future demand from China amid its rocky reopening, mentioned Burkett.

Oil costs have been rising late final yr due to optimism over a attainable restoration and subsequent uptick in demand from China, mentioned Burkett, in addition to over the constraint of Russian provide.

But “neither of those things have delivered in a way that would send oil prices higher,” he mentioned.

The February gold contract was up US$6.80 at US$1,935.40 an oz and the March copper contract was down a penny at US$4.25 a pound.

This report by The Canadian Press was first revealed Jan. 24, 2023.