S&P/TSX composite up more than 150 points, U.S. markets also up
TORONTO –
Canada’s predominant inventory index was up greater than 150 factors on the final day of buying and selling earlier than Christmas, whereas U.S. markets had been additionally on the sunny facet after a dramatic slide Thursday on each side of the border.
The S&P/TSX composite index was up 156.99 factors at 19,506.65.
The TSX was buoyed by sturdy beneficial properties in power shares, which gained greater than 4 per cent Friday.
In New York, the Dow Jones industrial common was up 176.44 factors at 33,203.93. The S&P 500 index was up 22.43 factors at 3,844.82,whereas the Nasdaq composite was up 21.74 factors at 10,497.86.
Markets had been comparatively quiet heading into the vacation weekend, however one factor stood out: the obvious absence of the same old “Santa Claus rally” that usually lifts markets this time of 12 months, mentioned John Zechner, chairman and lead fairness supervisor at J Zechner Associates.
“I think the Fed comments and the Fed actions two weeks ago really sort of threw the market for a loop,” he mentioned.
Between hawkish messaging from the Federal Reserve, one other spherical of charge hikes in Canada and the U.S., and earnings warnings beginning to roll in, buyers have had the wind taken out of their sails, he mentioned.
Micron’s pessimistic outlook launched with earnings Wednesday night helped get a sell-off going Thursday, mentioned Zechner.
“There’s certainly a lot … for investors to worry about,” he mentioned.
The newest Canadian GDP knowledge launched Thursday confirmed the financial system grew 0.1 per cent in October.
However, Zechner mentioned there are nonetheless loads of unanswered questions for buyers, and on this quickly altering surroundings October knowledge cannot inform the entire story.
The Canadian financial system remains to be exhibiting indicators of momentum from earlier within the 12 months regardless of the turbulence of 2022, mentioned Zechner.
“But that’s going to start to wear down now,” he mentioned.
Zechner mentioned the latest decline in job vacancies is extra of a number one indicator than the GDP knowledge.
The Canadian greenback traded for 73.51 cents US in contrast with 73.23 cents US on Thursday.
The February crude contract was up US$2.07 at US$79.56 per barrel and the February pure gasoline contract was up 5 cents at US$4.98 per mmBTU.
Oil was a bit oversold based mostly on worries about demand from China, however the market remains to be fairly tight, mentioned Zechner.
“The Russian oil has stayed on the market, despite the worries it would be pulled off.”
He mentioned the introduced reopening of the Keystone pipeline possible is not having a lot of an influence.
The February gold contract was up US$8.90 at US$1,804.20 an oz. and the March copper contract was up 5 cents at US$3.81 a pound.
This report by The Canadian Press was first revealed Dec. 23, 2022
