TORONTO — Canada’s main stock index ticked upward Monday thanks to broad-based strength while U.S. markets were mixed.
The S&P/TSX composite index was up 79.13 points at 20,275.82.
In New York, the Dow Jones industrial average was up 101.23 points at 33,586.52.The S&P 500 index was up 4.09 points at 4,109.11,while the Nasdaq composite was down 3.60 points at 12,084.36.
Monday was a “wishy-washy” day on the markets, said Philip Petursson, chief investment strategist at IG Wealth Management.
Investors are looking ahead to Wednesday, when the latest U.S. inflation data will come out and the Bank of Canada will announce its interest rate decision, said Petursson.
“The market is waiting, I think, for a number of signals,” he said.
While the Bank of Canada is assumed to continue with its pause on rates, investors will be interested in what the central bank might signal about the future, he said.
“The question is whether they outline their intent towards any cuts, starting in the middle of the year,” said Petursson. “I think the market’s hanging on that.
However, he expects markets in the U.S. and Canada to move largely in reaction to U.S. CPI on Wednesday, which will give insight into whether the Federal Reserve will raise or hold its own key interest rate next month.
“All eyes are on CPI right now,” Petursson said.
U.S. earnings will start rolling in at the end of the week, beginning with some major banks, which Petursson said will also be key for investors to watch.
“If the banks come out with softer earnings and also a cautionary tale on credit expansion, then that lets you know not only where the economy is going to go, but what the Fed is going to do,” he said.
“We have a lot coming up in the next two weeks,” said Petursson, adding that he thinks earnings for the first quarter of the year will be lower than many investors expect.
“Right now the market is a little bit more optimistic that it’ll be just a minor pullback in earnings growth, but I think it could be a little more significant.”
The Canadian dollar traded for 73.93 cents US compared with 74.19 cents US on Thursday.
The May crude contract was down 96 cents at US$79.74 per barreland the May natural gas contract was up 16 cents at US$2.17 per mmBTU.
The June gold contract was down US$22.60 at US$2,003.80 an ounce and the May copper contract was down almost four cents at US$3.98 a pound.
This report by The Canadian Press was first published April 10, 2023.
Companies in this story: (TSX:GSPTSE, TSX_CADUSD=X)
