S&P/TSX composite gains 200 points Tuesday, U.S. markets also up

TORONTO –

Canada’s predominant inventory index gained virtually 200 factors Tuesday with broad-based power throughout sectors whereas U.S. markets additionally rose, erasing Monday’s losses.

The S&P/TSX composite index was up 195.27 factors at 20,767.38.

January appeared to finish on a be aware of cautious optimism, echoing the month’s general development, mentioned Stephen Duench, vice-president and portfolio supervisor for AGF Investments Inc.

“I do believe that most of today’s flow is really just … kind of a continuation of what we’ve seen on trends to start the year in 2023.”

In New York, the Dow Jones industrial common was up 368.95 factors, or a couple of per cent, at 34,086.04. The S&P 500 index was up 58.83 factors, or virtually 1.5 per cent, at 4,076.60, whereas the Nasdaq composite was up 190.74 factors, or virtually 1.7 per cent, at 11,584.55.

It was a fantastic month for the businesses and sectors that didn’t carry out effectively final 12 months, like tech, Duench famous — the Nasdaq was up virtually 11 per cent for the month, whereas the Dow gained virtually three per cent and the S&P 500 greater than six per cent.

New information Tuesday confirmed Canadian GDP development cooling within the fourth quarter of 2022, with economists saying it is proof that charge hikes are starting to take impact.

And within the U.S., a report confirmed that development in employee pay and advantages slowed in the course of the finish of 2022.

With financial information displaying inflation cooling, there’s extra hope than there was a month in the past for a gentle touchdown because the central banks wind down their charge hike cycles, he mentioned.

That hope hasn’t been absolutely priced in but, however the tone has positively shifted, mentioned Duench.

The Federal Reserve is extensively anticipated to lift its key rate of interest one other 25 foundation factors Wednesday, although 50 factors isn’t out of the query, mentioned Duench. Investors shall be searching for any indicators within the central financial institution’s commentary that it’s gearing as much as pause its hikes.

But the Fed just isn’t prone to be as definitive with its messaging this time because the Bank of Canada was final week, mentioned Duench.

“I think it’d be surprising … if they came with dovish rhetoric tomorrow.”

The Canadian greenback traded for 74.91 cents US in contrast with 74.87 cents US on Monday.

The March crude contract was up 97 cents at US$78.87 per barrel and the March pure gasoline contract was up a penny at US$2.68 per mmBTU.

The April gold contract was up US$6.10 at US$1,945.30 an oz. and the March copper contract was up two cents at US$4.23 a pound.

This report by The Canadian Press was first printed Jan. 31, 2023.