S&P/TSX composite largely unchanged Tuesday, U.S. markets move lower
TORONTO –
Canada’s most important inventory index was largely unchanged Tuesday as energy in telecom, know-how, utilities and battery metals helped offset weak spot in different sectors, whereas U.S. markets moved decrease.
The S&P/TSX composite index was down 2.52 factors at 20,275.76.
In New York, the Dow Jones industrial common was down 198.77 factors at 33,402.38.The S&P 500 index was down 23.91 factors at 4,100.60, whereas the Nasdaq composite was down 63.12 factors at 12,126.33.
Tuesday’s market was pushed by recession worries, stated Jules Boudreau, senior economist at Mackenzie Investments.
“Bond yields are down and defensive stocks are outperforming, especially in the U.S. but also in Canada,” he stated.
JP Morgan Chase CEO Jamie Dimon stated Tuesday in a letter to shareholders that the banking disaster is not over, and its repercussions will final for years. He additionally stated the chances of a recession have elevated.
Meanwhile, U.S. job openings decreased in February, although Boudreau famous that quits rose, which he stated factors to continued energy within the job market and helps compensate for the decrease openings tally.
“By our estimation, quits are a better forecaster of jobs than openings. But we know that the Fed looks at openings a lot more. So it makes sense that markets reacted more forcefully,” stated Boudreau.
Oil remained above US$80 a barrel Tuesday after OPEC plus on Sunday introduced a shock output minimize, sending oil costs hovering to begin the week.
However, Boudreau stated oil costs might rise additional because the cuts are realized.
Industry consultants informed Canadian Press Tuesday that oil costs might return to US$100 a barrel later this yr.
It was the second day in a row this week that the TSX outperformed the S&P 500, stated Boudreau. Yesterday that was due to oil, and right now it is due to gold, he stated.
“Gold is up a lot,” Boudreau stated. “I think that’s probably some momentum from the banking crisis, where we saw gold outperform.”
The Canadian greenback traded for 74.37 cents US, in contrast with 74.42 cents US on Monday.
The May crude contract was up 29 cents at US$80.71 per barreland the May pure fuel contract was up lower than a penny at US$2.11 per mmBTU.
The June gold contract was up US$37.80 at US$2,038.20 an ounceand the May copper contract was down seven cents at US$3.97 a pound.
— With recordsdata from Amanda Stephenson
This report by The Canadian Press was first printed April 4, 2023.
