S&P/TSX composite unchanged Wednesday, U.S. markets slightly up
Broad-based strength helped buoy Canada's main stock index against losses in the energy sector Wednesday, while U.S. markets rose, particularly the Nasdaq which gained two per cent.
The S&P/TSX composite index was down 16.33 points at 20,751.05.
In New York, the Dow Jones industrial average was up 6.92 points at 34,092.96. The S&P 500 index was up 42.61 points at 4,119.21, while the Nasdaq composite was up 231.77 points at 11,816.32.
The markets have been quite resilient this week, said Ian Chong, associate portfolio manager for First Avenue Investment Counsel Inc.
Markets slowly sold off during the day as they anticipated the coming interest rate announcement by the U.S. Federal Reserve.
When the rate hike came in as expected at a quarter of a percentage point, markets went a little lower, reacting to hawkish messaging from the central bank that implied more than one rate increase could still be on the horizon, said Chong.
But after Federal Reserve chairman Jerome Powell gave a speech indicating that the central bank will make future rate decisions on a meeting by meeting basis, markets climbed for the rest of the day, likely embodying some relief, said Chong.
“It sounds much more balanced this time around,” said Chong.
While it’s clear the central bank isn’t ready to pause or pivot yet, Chong said the markets likely rallied on relief that the bank didn’t double down on its hawkish tone.
Meanwhile, oil prices were down Wednesday, and the energy index on the TSX lost 2.8 per cent. Much of these losses were from TC Energy, said Chong, which was down 5.6 per cent on news that the Coastal Gaslink project will cost more to complete than expected.
As earnings continue to roll in this week, with big tech names including Apple and Alphabet set to release results, Chong said markets could reverse some of the week's gains.
Earnings overall haven't been as bad as some expected, but some of the outlooks have been weak, said Chong.
The Canadian dollar traded for 75.07 cents US compared with 74.91 cents US on Tuesday.
The March crude contract was down US$2.46 at US$76.41 per barrel and the March natural gas contract was down 22 cents at US$2.47 per mmBTU.
The April gold contract was down US$2.50 at US$1,942.80 an ounce and the March copper contract was down 12 cents at US$4.11 a pound.
This report by The Canadian Press was first published Feb. 1, 2023.
MORE Business News
How to claim Ontario's staycation tax credit on your tax return
People in Ontario who vacationed in the province last year can claim the trip on their upcoming tax returns, and here’s how to do it.
Thinking of an alternative lender? What it could mean for your mortgage
As economic conditions make it harder to qualify for a mortgage, Canadians are increasingly looking to alternative lenders, particularly amid interest rates. CTVNews.ca looks at why Canadians are seeking private lenders and the potential benefits and risks attached to them.
opinion | Tips on how to get the most out of your TFSA
The federal government's latest TFSA contribution limit increase took effect this year. On CTVNews.ca, personal finance contributor Christopher Liew outlines eight tips on how Canadians can get the most out of this popular savings account.
opinion | These are the new tax brackets for 2023
There are going to be some changes to Canada's tax brackets as we move into 2023. These changes could impact how you’re taxed when you file your 2023 income tax returns next year.
Canadian food bloggers share tips, tricks to make filling budget-friendly meals
Food bloggers and cookbook authors say meal-planning and simple recipes can help home cooks put together filling and tasty dishes on a budget -- an increasingly stressful challenge amid rising food prices.
Canadians fell for more home improvement scams in 2022, new report finds
The Better Business Bureau says Canadians fell for home improvement scams the most in 2022, in a report highlighting the riskiest scams and how much money they cost Canadians.
'Not every sale is a bargain': How to avoid common money mistakes
In light of new poll results that found Canadians are spending a lot of time worrying about money, one personal finance expert shares some simple tips to help Canadians avoid making some common, costly mistakes with their cash.
Opinion | Does buying an electric vehicle make financial sense?
While there are many benefits to electric cars, the question of whether they are a good financial choice in Canada is still up in the air, personal finance contributor Christopher Liew explains on CTVNews.ca.