S&P/TSX composite rises Friday on energy, tech gains, U.S. markets also rise
TORONTO –
Canada’s essential inventory index rose Friday, led by good points within the power, know-how and health-care sectors, whereas U.S. markets additionally posted good points.
The S&P/TSX composite index closed up 133.90 factors at 20,519.37.
Economic information was the principle driver of market good points Friday, stated Macan Nia, co-chief funding strategist at Manulife Investment Management.
Two of the Federal Reserve’s most popular measures of inflation got here out Friday, displaying continued indicators of financial declaration, stated Nia.
“Markets are taking that as a positive sign that the U.S. Federal Reserve is much closer to the pause today than what they were a quarter ago,” he stated.
In New York, the Dow Jones industrial common was up 176.57 factors at 35,459.29. The S&P 500 index was up 44.82 factors at 4,582.23, whereas the Nasdaq composite was up 266.55 factors at 14,316.66.
Over the previous couple of weeks, increasingly proof has piled up suggesting a resilient economic system whilst inflation recedes below the load of upper rates of interest, stated Nia.
Interest-rate-sensitive shares particularly reacted positively Friday, with the Nasdaq up 1.9 per cent.
It’s an identical story in Canada, with the most recent GDP information Friday displaying reasonable progress in May however a possible contraction in June.
“The signs in Canada are showing that the interest rate increases that we’ve seen, really the majority of them since the summer of last year, are starting to be absorbed by the broader Canadian economy,” stated Nia.
Right now, markets in each Canada and the U.S. should not anticipating central banks in both nation to hike rates of interest once more in 2023, he stated.
But central banks do not wish to declare victory on inflation too early, Nia stated, and shall be cautious going ahead.
“Central banks have been put in a very uncomfortable position,” he stated. “There’s factors that are contributing to inflation that are outside really the control of their policy tools.”
Amid the backdrop of hopeful financial information, earnings season is in full swing, with firms reporting a “mixed bag” of outcomes, stated Nia.
“There are companies that can navigate this environment better than others,” he stated.
Among the businesses reporting earnings above consensus estimates had been Intel and Mondelez International, whereas Exxon Mobile reported weaker earnings than anticipated.
In commodities, oil slipped previous US$80 a barrel because it continued its regular climb of the previous month.
“Going forward, the primary driver of oil prices in the near term is going to be how the health of the global economy unfolds,” stated Nia.
“We believe that as we continue to absorb these interest rate increases that we’ve experienced over the last year that the global economy will continue to slow. So there will be kind of a ceiling on oil prices as we move into next year.”
The September crude oil contract was up 49 cents at US$80.58 per barrel and the September pure fuel contract was up 4 cents at US$2.64 per mmBTU.
The Canadian greenback traded for 75.57 cents US in contrast with 75.75 cents US on Thursday.
The December gold contract was up US$14.70 at US$1,999.90 an oz and the September copper contract was up 5 cents at US$3.93 a pound.
This report by The Canadian Press was first revealed July 28, 2023.
