TSX posts Wednesday gain despite lower price of oil, while U.S. markets also rise
By Rosa Saba, The Canadian Press on October 11, 2023.
TORONTO – Strength in the utilities, telecommunications and financial sectors helped lift Canada’s main stock index higher Wednesday, while U.S. stock markets also rose despite a stronger-than-expected report on wholesale inflation. After solid gains to start the week, Wednesday proved more volatile, said Greg Taylor, chief investment officer at Purpose Investments, with choppy trading throughout the day before markets ended in the green. “It’s kind of a confusing day,” he said. The S&P/TSX composite index closed up 162.64 points at 19,663.84. In New York, the Dow Jones industrial average was up 65.57 points at 33,804.87. The S&P 500 index was up 18.71 points at 4,376.95,while the Nasdaq composite was up 96.83 points at 13,659.68. Energy prices moved lower Wednesday, noted Taylor, with oil declining more than two per cent. The price of oil has moved off its recent highs, from more than US$90 a barrel to less than US$84 . “I think that surprised a lot of people as people were starting to increase the risk on commodities,” said Taylor. “Seeing them pull back today is a bit surprising, and it’s interesting to see the equities do a little better.” Exxon Mobil’s US$60 billion deal for Pioneer Natural may have given a boost to equities on Wednesday, Taylor said. A report on U.S. wholesale inflation showed prices rose by more than expected last month. However, the results weren’t strong enough to shake the growing consensus that the U.S. Federal Reserve and its Canadian counterpart are done with interest rate hikes, said Taylor. Though the Fed minutes from the central bank’s last meeting were hawkish, a lot has changed since that meeting, he said. “I think a lot of people are kind of ignoring that,” said Taylor, instead turning to upcoming news for a sense of how the central bank might approach its next rate decision. Thursday will see the report on consumer inflation, one of the major data points in the central bank’s decision-making. “It’s going to have to be materially different than expected to change the path for the Fed,” said Taylor. Friday’s U.S. bank earnings will also help set the tone, he added. The Canadian dollar traded for 73.51 cents US compared with 73.58 cents US on Tuesday. The November crude oil contract was down US$2.48 at US$83.49 per barrel and the November natural gas contract was down half a penny at US$3.38 per mmBTU. The December gold contract was up US$12.00 at US$1,887.30 an ounce and the December copper contract was down two cents at US$3.61 a pound. – With files from The Associated Press This report by The Canadian Press was first published Oct. 11, 2023. Companies in this story: (TSX:GSPTSE, TSX:CADUSD) 20-19
