TORONTO — Canada’s main stock index was largely unchanged Tuesday as strength in telecom, technology, utilities and battery metals helped offset weakness in other sectors, while U.S. markets moved lower.
The S&P/TSX composite index was down 2.52 points at 20,275.76.
In New York, the Dow Jones industrial average was down 198.77 points at 33,402.38.The S&P 500 index was down 23.91 points at 4,100.60, while the Nasdaq composite was down 63.12 points at 12,126.33.
Tuesday’s market was driven by recession worries, said Jules Boudreau, senior economist at Mackenzie Investments.
“Bond yields are down and defensive stocks are outperforming, especially in the U.S. but also in Canada,” he said.
JP Morgan Chase CEO Jamie Dimon said Tuesday in a letter to shareholders that the banking crisis isn’t over, and its repercussions will last for years. He also said the odds of a recession have increased.
Meanwhile, U.S. job openings decreased in February, though Boudreau noted that quits rose, which he said points to continued strength in the job market and helps compensate for the lower openings tally.
“By our estimation, quits are a better forecaster of jobs than openings. But we know that the Fed looks at openings a lot more. So it makes sense that markets reacted more forcefully,” said Boudreau.
Oil remained above US$80 a barrel Tuesday after OPEC plus on Sunday announced a surprise output cut, sending oil prices soaring to start the week.
However, Boudreau said oil prices could rise further as the cuts are realized.
Industry experts told Canadian Press Tuesday that oil prices could return to US$100 a barrel later this year.
It was the second day in a row this week that the TSX outperformed the S&P 500, said Boudreau. Yesterday that was because of oil, and today it’s because of gold, he said.
“Gold is up a lot,” Boudreau said. “I think that’s probably some momentum from the banking crisis, where we saw gold outperform.”
The Canadian dollar traded for 74.37 cents US, compared with 74.42 cents US on Monday.
The May crude contract was up 29 cents at US$80.71 per barreland the May natural gas contract was up less than a penny at US$2.11 per mmBTU.
The June gold contract was up US$37.80 at US$2,038.20 an ounceand the May copper contract was down seven cents at US$3.97 a pound.
— With files from Amanda Stephenson
This report by The Canadian Press was first published April 4, 2023.
Companies in this story: (TSX:GSPTSE, TSX_CADUSD=X)
