S&P/TSX composite closes up more than 100 points, U.S. markets flat

TORONTO –

Gains within the vitality and monetary sectors helped Canada’s predominant inventory index achieve greater than 100 factors, whereas U.S. inventory markets had been extra subdued however ended the day within the inexperienced.

The S&P/TSX composite index was up 106.13 factors at 19,306.89.

In New York, the Dow Jones industrial common was up 92.20 factors at 32,849.74. The S&P 500 index was up 3.96 factors at 3,821.62, whereas the Nasdaq composite was up 1.08 factors at 10,547.11.

The U.S. greenback weakened Tuesday on account of Japan’s shock change to its yield curve coverage, placing upward stress on gold, mentioned Philip Petursson, chief funding strategist at IG Wealth Management.

That’s serving to increase the TSX, he mentioned, alongside a small rally within the monetary sector because the yield curve unfold is narrowing.

The TSX’s vitality index was up 1.22 per cent, whereas financials had been up 0.72 per cent.

The Canadian greenback traded for 73.42 cents US in contrast with 73.24 cents US on Monday.

Retail spending information launched Tuesday confirmed general spending is slowing in Canada, however Petursson mentioned the Canadian shopper has been comparatively resilient within the face of inflation and rising rates of interest. However, he expects consumers to tighten their purse strings extra heading into 2023.

Petursson suspects Wednesday’s launch of inflation information in Canada for November will probably be per U.S. tendencies, even perhaps falling sooner than anticipated.

With the Bank of Canada making clear that any future price hikes will probably be based mostly on financial information, inflation studying Wednesday would assist solidify investor optimism that the tightening cycle is nearly over, he mentioned.

“There’s been really just kind of one overriding theme to 2022,” he mentioned.

“That has been higher inflation, higher interest rates, and that’s been driving the market. And until we get past that, I think the market can’t break out to the upside.”

Petursson thinks inflation’s peak is prior to now, however mentioned traders have been cautious as of but to rejoice given the volatility of 2022.

“I think as far as the TSX is concerned, we’ve seen the downside, and it’s probably behind us,” he mentioned.

The February crude contract was up 85 cents at US$76.23 per barrel and the January pure gasoline contract was down 53 cents at US$5.33 per mmBTU.

The February gold contract was up US$27.70 at US$1,825.40 an ounceand the March copper contract was up two cents at US$3.80 a pound.

This report by The Canadian Press was first printed Dec. 20, 2022