S&P/TSX composite down in late-morning trading, U.S. stocks also lower

TORONTO –

Canada’s important inventory index was down by greater than 150 factors or 0.8 per cent Monday, weighed down by losses in vitality, financials, utilities and metals, whereas U.S. indexes tumbled by greater than 1.5 per cent.

The S&P/TSX composite index was down 163.28 factors at 20,220.49.

In New York, the Dow Jones industrial common was down 497.57 factors, or 1.45 per cent, at 33,849.46. The S&P 500 index was down 62.18 factors, or 1.54 per cent, at 3,963.94,whereas the Nasdaq composite was down 176.86 factors, or 1.58 per cent, at 11,049.50.

One of the massive tales of the day is the continued concern over China’s COVID-19 restrictions as instances rise, mentioned Mike Archibald, vice-president and portfolio supervisor with AGF Investments Inc.

“That’s definitely taking a bit of a bite out of the risk appetite of the market,” he mentioned.

This is resulting in a better U.S. greenback which is placing stress on commodities, mentioned Archibald.

The December gold contract was down US$13.70 at US$1,740.30 an oz. and the March copper contract was down one and a half cents at US$3.62 a pound.

More hawkish language from Fed audio system Monday, although unsurprising, helped bolster expectations that charges might be “higher for longer,” he mentioned.

The Canadian greenback traded for 74.33 cents US comparedwith 74.76 cents US on Friday.

Despite the considerations relating to China, oil was truly up Monday, famous Archibald — however that is as a result of it is recovering some losses after being hit exhausting in a single day.

The January crude contract was up 96 cents at US$77.24 per barrel and the January pure fuel contract was down 13 cents at US$7.20 per mmBTU.

Headlines speculating that OPEC plus is contemplating manufacturing cuts possible helped claw again some positive factors on oil throughout late-morning buying and selling and into the afternoon, he mentioned.

However, vitality shares aren’t seeing the identical restoration, he mentioned. The TSX vitality index was down 1.65 per cent Monday.

Throughout the yr, vitality shares have carried out higher than oil costs, mentioned Archibald, and the query stays of the place they’ll meet: both vitality shares will soften or oil costs will go up once more.

This “battle going on in the marketplace” goes to interrupt in some unspecified time in the future, he mentioned.

“It just remains to be seen which way.”

Archibald mentioned financial institution earnings this week will assist give a way of how the patron is doing, whereas U.S. employment information launched Friday will point out the consequences of price hikes in November.

There’s “lots of information for the Fed to kind of chew on” going into the ultimate price determination of the yr, he mentioned.

“I still continue to believe we’re getting probably fairly close to the end of the hiking cycle.”

This report by The Canadian Press was first revealed Nov. 28, 2022.