S&P/TSX Index Up at Monday’s Close, US Stock Markets Also Up | national company

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TORONTO – Canada’s main stock index was up on Monday, continuing Friday’s rally, while U.S. markets were also up.

The S&P/TSX Composite Index gained 57.45 points to 18,918.40.

In New York, the Dow Jones industrial average rose 417.06 points to 31,499.62. The S&P 500 index rose 44.59 points to 3,797.34, while the Nasdaq composite rose 92.89 points to 10,952.61.

There is a lot of hope that the Fed’s aggressive rate hike cycle is coming to an end, said Lyle Stein, president of Forvest Global Wealth Management Inc.

The Bank of Canada is expected to announce another outsized rate hike on Wednesday.

Canada is in a more precarious position than the United States due to its sensitivity to the housing market, Stein said. A 50 point rise this week may be too small to rein in imported inflation, and a 75 point rise may hurt the housing market.

“We’re in a bit of a pickle here.”

BMO economist Priscilla Thiagamoorthy said in a note on Monday that with Canadian consumer prices rising 6.9% in September and food prices up 11.4% in September Year-over-year, BMO expects another 75 point increase.

Monday morning’s data showed that aggressive central bank tightening is starting to take its toll, Candice Bangsund, vice president and portfolio manager at Fiera Capital, said in an email.

She said investors got a reprieve with reports last week that the Fed was considering a lower rate hike in December after the expected 75 basis point hike in November.

Stein said a wave of earnings this week, including some of the biggest tech companies, will arrive this week. This will make the effect of inflation and central bank tightening on businesses clearer, he said.

“That will be the most important thing over the next week,” he said.

The December crude oil contract was down 47 cents at US$84.58 per barrel and the December natural gas contract was up 28 cents at US$5.75 per mmBTU.

Crude oil fell Monday on economic data in China that revealed a mixed outlook for growth and energy demand, Stein said.

The Canadian dollar followed suit, alongside a stronger U.S. dollar, as worries about China’s economy caused investors “to head into the safe-haven currency,” Bangsund said.

The Canadian dollar was trading at 72.88 cents US, down from 72.92 cents US on Friday.

Thiagamoorthy noted that the Biden administration plans to release 10 to 15 million barrels of crude from the Strategic Petroleum Reserve to try to lower oil prices.

The December gold contract was down US$2.20 at US$1,654.10 an ounce and the December copper contract was down 4.4 cents at US$3.43 an ounce. book.

This report from The Canadian Press was first published on October 24, 2022.

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

The Canadian Press. All rights reserved.

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