S&P/TSX composite edges down; U.S. markets tick higher on quiet trading day

TORONTO –

Canada’s major inventory index edged downwards and U.S. markets ticked barely greater on what was total a quiet day of buying and selling Thursday.

The S&P/TSX composite index closed down 4.03 factors at 19,969.19.

In New York, the Dow Jones industrial common was up 183.56 factors at 33,781.48. The S&P 500 index was up 29.59 factors at 3,963.51, whereas the Nasdaq composite was up 123.45 factors at 11,082.

“It’s been a flat week,” mentioned Ashish Utarid, assistant vice-president for funding technique with IG Wealth Management, including he believes the lull is setting the tone for what needs to be a quiet the rest of the yr for traders.

“We’ve had lots of data that’s come out in the last few weeks, and after American Thanksgiving you tend to have lower activity for the rest of the year,” Utarid mentioned.

“So I don’t expect there to be a ton of volatility to finish off the year.”

On Wednesday, the Bank of Canada introduced it could hike its key rate of interest to 4.25 per cent — the best it has been since January 2008. But the transfer did not have a major impression on markets, despite the fact that earlier price hikes have spooked traders fearful that central bankers might go too far and tip the economic system into recession.

The Bank of Canada has raised its key rate of interest seven consecutive instances since March in an effort to carry inflation down and sluggish the economic system, however Utarid mentioned markets seem to have already absorbed the most recent price hike.

“All of the bad news has been worked into the economy by now,” Utarid mentioned, including IG Wealth Management’s 2023 outlook is looking for a extra optimistic yr forward for each fairness and fixed-income markets, primarily based on the idea that rates of interest have peaked and inflation will progressively start to come back down.

“We’re hoping to see some optimism in 2023,” he mentioned.

“Yes, it might be rough in the beginning, and the recession risk is still there, but the equities markets are very optimistic looking to the next 12 to 18 months,” he mentioned.

The Canadian greenback traded for 73.63 cents US in contrast with 73.31 cents US on Wednesday.

Crude costs jumped briefly Thursday morning on news that TC Energy Corp. has shut down its Keystone Pipeline, which stretches 4,324 kilometres and helps transfer Canadian and U.S. crude oil to markets round North America, as a consequence of an oil leak in Kansas.

However, TC Energy has not indicated how a lot oil was spilled or how lengthy the pipeline system is anticipated to be down, and crude markets settled comparatively rapidly.

The January crude contract was down 55 cents at US$71.46 per barrel and the January pure fuel contract was up 24 cents at US$5.96 per mmBTU.

The S&P/TSX capped vitality index closed down 0.64 per cent.

Also making news on Thursday was an announcement from Canada’s monetary regulator that it’s elevating the quantity of capital main banks must have available over issues of excessive family debt ranges and different systemic vulnerabilities.

The Office of the Superintendent of Financial Institutions mentioned the home stability buffer will go up by half a share level to 3 per cent as of Feb. 1, 2023.

“I think that’s a really interesting story, but the financial markets haven’t moved negatively with that news,” Utarid mentioned, including the S&P/TSX capped financials index was comparatively unchanged Thursday, closing down simply 0.21 per cent.

“I think they were probably expecting it.”

The February gold contract was up US$3.50 at US$1,801.50 an oz and the March copper contract was up two cents at US$3.88 a pound.

This report by The Canadian Press was first printed Dec. 8, 2022.