S&P/TSX composite gains 200 points Tuesday, U.S. markets also up
Canada's main stock index gained almost 200 points Tuesday with broad-based strength across sectors while U.S. markets also rose, erasing Monday's losses.
The S&P/TSX composite index was up 195.27 points at 20,767.38.
January appeared to end on a note of cautious optimism, echoing the month’s overall trend, said Stephen Duench, vice-president and portfolio manager 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 average was up 368.95 points, or more than one per cent, at 34,086.04. The S&P 500 index was up 58.83 points, or almost 1.5 per cent, at 4,076.60, while the Nasdaq composite was up 190.74 points, or almost 1.7 per cent, at 11,584.55.
It was a great month for the companies and sectors that didn’t perform well last year, like tech, Duench noted — the Nasdaq was up almost 11 per cent for the month, while the Dow gained almost three per cent and the S&P 500 more than six per cent.
New data Tuesday showed Canadian GDP growth cooling in the fourth quarter of 2022, with economists saying it's evidence that rate hikes are beginning to take effect.
And in the U.S., a report showed that growth in worker pay and benefits slowed during the end of 2022.
With economic data showing inflation cooling, there’s more hope than there was a month ago for a soft landing as the central banks wind down their rate hike cycles, he said.
That hope hasn’t been fully priced in yet, but the tone has definitely shifted, said Duench.
The Federal Reserve is widely expected to raise its key interest rate another 25 basis points Wednesday, though 50 points isn’t out of the question, said Duench. Investors will be looking for any signs in the central bank’s commentary that it’s gearing up to pause its hikes.
But the Fed is not likely to be as definitive with its messaging this time as the Bank of Canada was last week, said Duench.
“I think it'd be surprising … if they came with dovish rhetoric tomorrow.”
The Canadian dollar traded for 74.91 cents US compared with 74.87 cents US on Monday.
The March crude contract was up 97 cents at US$78.87 per barrel and the March natural gas 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 ounce and the March copper contract was up two cents at US$4.23 a pound.
This report by The Canadian Press was first published Jan. 31, 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.