S&P/TSX composite ticks lower Thursday, U.S. stock markets move higher

TORONTO –

Canada’s foremost inventory index ticked decrease Thursday amid broad-based weak spot, whereas U.S. markets moved greater, led by the know-how sector.

“It’s definitely a quieter market today,” stated Greg Taylor, chief funding officer at Purpose Investments.

The Bank of Canada raised its key rate of interest Wednesday to 4.75 per cent after a number of months of holding it, within the newest transfer by the central financial institution to combat inflation.

“I think a lot of people are just digesting the moves we got yesterday,” Taylor stated.

The S&P/TSX composite index was down 40.99 factors at 19,942.70.

In New York, the Dow Jones industrial common was up 168.59 factors at 33,833.61. The S&P 500 index was up 26.41 factors at 4,293.93, whereas the Nasdaq composite was up 133.63 factors at 13,238.52.

Markets within the U.S. are anticipating inflation knowledge within the U.S. subsequent week adopted by the Federal Reserve’s personal charge announcement, stated Taylor.

At this level, markets appear to count on a pause from the Fed subsequent week, stated Taylor. But the actual query is whether or not it is a pause or just a skip earlier than additional hikes.

The market is saying skip, stated Taylor, however the inflation launch earlier than the financial institution’s choice may change the whole lot.

“I think what this does, though, is cause a lot of uncertainty. And in general, markets don’t like uncertainty,” he stated.

“It does feel again like the market’s kind of trapped in this zone.”

The bond market remains to be eyeing charge cuts close to the top of the 12 months, famous Taylor, which he stated is “too aggressive.”

U.S. markets noticed considerably of a reversal Thursday as tech gained again its losses, stated Taylor, seemingly partly on account of some weaker employment knowledge. U.S. functions for unemployment advantages rose final week to their highest stage since October 2021, although the labour market remains to be wholesome.

However, he stated tech’s rally seems to be slowing general, which might be constructive for the opposite sectors.

“For the markets to be healthy, you need a broad-based rally,” he stated.

The Canadian greenback traded for 74.86 cents UScompared with 74.76 cents US on Wednesday.

The July crude contract was down US$1.24 cents at US$71.29 per barrel and the July pure fuel contract was up two cents at US$2.35 per mmBTU.

The August gold contract was up US$20.20 at US$1,978.60 an ounceand the July copper contract was up 4 cents at US$3.80 a pound.

– With information from The Associated Press

This report by The Canadian Press was first revealed June 8, 2023.