S&P/TSX composite index gains more than 100 points, U.S. markets climb

TORONTO –

Canada’s essential inventory index rose greater than 100 factors Thursday whereas U.S. inventory markets climbed steadily all through the day to put up beneficial properties of multiple per cent after two items of constructive financial news.

The essential driver for markets was a surprisingly constructive producer value report, stated Mona Mahajan, senior funding strategist with Edward Jones.

Year-over-year PPI inflation fell considerably from 4.9 per cent in February to 2.7 per cent in March, whereas core year-over-year PPI was down to three.6 per cent from 4.5 per cent.

Meanwhile, the U.S. client value index, which was launched Wednesday, additionally fell however not as considerably, whereas core CPI ticked upward.

“I think that does support this idea that margin pressure on corporations may be starting to alleviate somewhat,” Mahajan stated.

“We’ve also seen supply chain indices meaningfully moderate.”

In a one-two punch of excellent financial news, preliminary jobless claims additionally ticked increased, indicating some softening within the labour market, stated Mahajan.

Markets are welcoming each items of financial information, she stated.

The S&P/TSX composite index was up 110.17 factors at 20,564.49.

In New York, the Dow Jones industrial common was up 383.19 factors at 34,029.69. The S&P 500 index was up 54.27 factors at 4,146.22, whereas the Nasdaq composite was up 236.93 factors at 12,166.27.

Yields additionally moved increased, indicating a transfer towards threat, Mahajan stated.

The Nasdaq particularly gained virtually two per cent Thursday, highlighting the tech sector’s continued publicity to interest-rate expectations in addition to the truth that the sector took a number of the largest hits final yr, she stated.

In Canada, the TSX is having a usually constructive week, stated Mahajan, helped by the Bank of Canada’s choice to proceed holding rates of interest. Bank of Canada governor Tiff Macklem has been staunch in his remarks this week that rates of interest will doubtless stay increased for longer, in opposition with some market bets on cuts later within the yr.

U.S. earnings season is beginning to roll in, and the massive banks reporting on Friday will give perception into how shoppers are faring but additionally how the banking sector is doing within the aftermath of March’s disaster, stated Mahajan.

Earnings estimates have come down considerably, she stated, and buyers — in addition to the Fed — shall be watching intently to see how they shake out.

“I definitely think that will be the next series of catalysts,” stated Mahajan.

The Canadian greenback traded for 74.86 cents US in contrast with 74.37 cents US on Wednesday.

The May crude oil contract was down US$1.10 at US$82.16 per barrel and the May pure gasoline contract was down 9 cents at US$2.01 per mmBTU.

The June gold contract was up US$30.40 at US$2,055.30 an oz and the May copper contract was up 4 cents at US$4.12 a pound.

This report by The Canadian Press was first revealed April 13, 2023