S&P/TSX composite moves lower Thursday despite energy gains, U.S. stock markets down
TORONTO –
Strength in vitality shares Thursday wasn’t sufficient to maintain Canada’s principal inventory index from posting a loss amid weak point in tech and different sectors, whereas U.S. markets additionally declined.
It appears like there is a little bit of a change in tone after the second quarter as markets seek for course following a really robust begin to the yr, stated Kevin Burkett, portfolio supervisor at Victoria-based Burkett Asset Management.
“I think the next four to six weeks are going to be really critical to send the markets either on its continued growth path or maybe cool things off,” he stated.
The S&P/TSX composite index was down 86.84 factors at 19,812.23.
In New York, the Dow Jones industrial common was down 290.91 factors at 34,474.83. The S&P 500 index was down 33.97 factors at 4,370.36, whereas the Nasdaq composite was down 157.70 factors at 13,316.93.
Thursday noticed a continued “summer drift” downward, however beneath the quiet day of buying and selling there is a continued sectoral shift taking place, stated Burkett.
The S&P/TSX composite’s loss Thursday got here regardless of the vitality index rising 1.45 per cent.
With vitality costs a lot increased than they had been earlier this summer time, the sector is contributing to a shift away from the expansion shares that fuelled this yr’s rally, and towards worth shares, stated Burkett.
Last yr “was all about value outperformance relative to growth,” he stated. Then progress shares, led by tech, rallied within the first half of 2023 and took again a few of their 2022 losses.
“We’re starting to see in the late summer some of that begin to unwind a little bit. And I’d say today has been a strong value outperformance day relative to growth.”
That’s regardless of the stress on commodities being felt as weak point in China’s financial system more and more makes itself recognized.
“I think some of the stories we’re hearing out of China are raising concern about whether the Chinese economy really is going to continue to kind of be the engine of the commodity supercycle that we’ve seen, really, since the early 2000s,” stated Burkett.
That’s weighing on commodities, however cuts from OPEC plus are persevering with to buoy oil costs, he stated.
Bond yields stayed elevated Thursday as traders more and more see rates of interest staying increased for longer within the face of financial resilience, stated Burkett.
In but extra indicators of that resilience, fewer U.S. staff utilized for unemployment advantages final week than anticipated, whereas a survey of mid-Atlantic producers confirmed sudden progress.
The Canadian greenback traded for 73.94 cents US in contrast with 73.98 cents US on Wednesday.
The October crude contract was up 88 cents US at US$79.90 per barrel and the September pure gasoline contract was up three cents at US$2.62 per mmBTU (million British thermal items).
The December gold contract was down US$13.10 at US$1,915.20 an oz and the September copper contract was up three cents at US$3.69 a pound.
With recordsdata from The Associated Press. This report by The Canadian Press was first printed Aug. 17, 2023.
