S&P/TSX Composite Index tumbles on Thursday, so do US stock markets

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TORONTO – Canada’s main stock index fell slightly on Thursday with mixed results for all indexes, supported by energy, industrial and base metals stocks, while U.S. stock markets were also down.

The S&P/TSX Composite Index lost 35.79 points to 19,241.22.

In New York, the Dow Jones industrial average was down 146.51 points to 32,001.25. The S&P 500 index fell 39.80 points to 3,719.89, while the Nasdaq composite fell 181.86 points to 10,342.94.

It was a surprisingly calm day for the markets, said Colin Cieszynski, chief market strategist at SIA Wealth Management.

“Considering how much action we had yesterday afternoon, today was awfully quiet,” he said.

The Nasdaq is down on tech earnings, Cieszynski noted, but in Canada, commodities have kept the TSX afloat.

The TSX Energy Index rose 2.58%, while Industrials rose 1.11%, Base Metals 1.33% and Battery Metals down 6.71% .

The Canadian dollar was trading at 72.73 cents US, compared to 73.37 cents US on Wednesday.

The December crude oil contract was down US$1.83 at US$88.17 per barrel and the December natural gas contract was down 29 cents at US$5.98 per mmBTU.

Cieszynski said that for the past few days, energy stocks have been doing better than energy prices, when they normally move in tandem.

That’s likely because stock prices are more forward-looking than commodity prices, he said.

“Energy praise is still trading at a fairly robust level for producers,” he said.

Some Canadian companies reporting earnings on Thursday spoke of uncertain months ahead, such as Bombardier, which said it was ready for a volatile market, and Lightspeed Commerce, which said it was cautious for the upcoming holiday season. .

“It’s no surprise,” Cieszynski said. “It would be prudent for companies to exercise caution at this time.”

“Even though Canada and the United States have gotten into a bit of a tangle, the broader global economy is really struggling.”

North America is sailing on steady seas compared to other countries, Cieszynski said. Europe is heading for a potential energy crisis and the Bank of England has just turned the tide to raise interest rates.

With the Bank of Canada and the Federal Reserve signaling that smaller increases are on the horizon, we may be heading for a less volatile period, he said. Jobs data released on Friday will give us a better idea of ​​where we are headed, he added.

The December gold contract was down US$19.10 at US$1,630.90 an ounce and the December copper contract was down 4 cents at US$3.43 per pound.

This report from The Canadian Press was first published on November 3, 2022.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)

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