S&P/TSX composite down in late-morning trading, U.S. stocks also lower
Canada's main stock index was down by more than 150 points or 0.8 per cent Monday, weighed down by losses in energy, financials, utilities and metals, while U.S. indexes tumbled by more than 1.5 per cent.
The S&P/TSX composite index was down 163.28 points at 20,220.49.
In New York, the Dow Jones industrial average was down 497.57 points, or 1.45 per cent, at 33,849.46. The S&P 500 index was down 62.18 points, or 1.54 per cent, at 3,963.94,while the Nasdaq composite was down 176.86 points, or 1.58 per cent, at 11,049.50.
One of the big stories of the day is the continued concern over China's COVID-19 restrictions as cases rise, said Mike Archibald, vice-president and portfolio manager with AGF Investments Inc.
"That's definitely taking a bit of a bite out of the risk appetite of the market," he said.
This is leading to a higher U.S. dollar which is putting pressure on commodities, said Archibald.
The December gold contract was down US$13.70 at US$1,740.30 an ounce and the March copper contract was down one and a half cents at US$3.62 a pound.
More hawkish language from Fed speakers Monday, though unsurprising, helped bolster expectations that rates will be "higher for longer," he said.
The Canadian dollar traded for 74.33 cents US comparedwith 74.76 cents US on Friday.
Despite the concerns regarding China, oil was actually up Monday, noted Archibald -- but that's because it's recovering some losses after being hit hard overnight.
The January crude contract was up 96 cents at US$77.24 per barrel and the January natural gas contract was down 13 cents at US$7.20 per mmBTU.
Headlines speculating that OPEC plus is considering production cuts likely helped claw back some gains on oil during late-morning trading and into the afternoon, he said.
However, energy stocks aren't seeing the same recovery, he said. The TSX energy index was down 1.65 per cent Monday.
Throughout the year, energy stocks have performed better than oil prices, said Archibald, and the question remains of where they're going to meet: either energy stocks will soften or oil prices will go up again.
This "battle going on in the marketplace" is going to break at some point, he said.
"It just remains to be seen which way."
Archibald said bank earnings this week will help give a sense of how the consumer is doing, while U.S. employment data released Friday will indicate the effects of rate hikes in November.
There's "lots of information for the Fed to kind of chew on" going into the final rate decision of the year, he said.
"I still continue to believe we're getting probably fairly close to the end of the hiking cycle."
This report by The Canadian Press was first published Nov. 28, 2022.
opinion | How much rent can you afford?
Many Canadians have continued to see an increase in their rental rates in 2023. In an column on CTVNews.ca, personal finance contributor Christopher Liew explains how to calculate how much rent you can afford.
Canadians now believe they need $1.7 million in savings in order to retire, a 20 per cent increase from 2020, according to a new BMO survey. The eye-watering figure is the largest sum since BMO first started surveying Canadians about their retirement expectations 13 years ago.
With the spring break travel season approaching, those looking to flee the cold, wet Canadian snow for sunnier skies will likely be met with a hefty price tag for their getaway, with inflation and increased demand pushing costs up.
When selling a home, Canadians may be exempted from paying capital gains tax on a residential property -- if it's their principal residence. On CTVNews.ca, personal finance contributor Christopher Liew explains what's determined as a principal residence, and what properties are eligible for the exemption.
The Bank of Canada hiked its key interest rate by a quarter of a percentage point Wednesday, bringing it to 4.5 per cent. Here's a look at what the rate means, how analysts are interpreting it and what it could mean for consumers.
The federal government's latest TFSA contribution limit increase took effect as of January 1, 2023. Personal finance contributor Christopher Liew outlines how the government’s most recent TFSA contribution limit increase affects you and how to make the most of it.
Finding an affordable place to live in the territories, where housing has long been a challenge, is getting even harder, the Canada Mortgage and Housing Corporation suggested in a report released in December. In Yellowknife, the report said, the growing senior population, urbanization and strong labour market has pressured the housing supply.
Canada is suffering from a severe skills shortage in several key sectors, experts say, thanks to factors that include deficiencies in our education system as well as changing demographics. CTVNews.ca looks at some of the skills that will be most in-demand in 2023.