S&P/TSX composite up almost 300 points, U.S. markets also rise

TORONTO — Canada’s main stock index ended close to 300 points on Friday, supported by gains in the base metals sector, while US markets also rose. The composite S&P/TSX index rose 281.66 points to 18,860.95.

TORONTO — Canada’s main stock index ended close to 300 points on Friday, supported by gains in the base metals sector, while US markets also rose.

The composite S&P/TSX index rose 281.66 points to 18,860.95.

In New York, the Dow Jones industrial average rose 748.97 points from 2.5 percent to 31,082.56. The S&P 500 index rose 86.97 points, or 2.4 percent, to 3,752.75, while the Nasdaq composite rose 244.87 points, or 2.3 percent, to 10,859.72.

“It’s the first Friday in several weeks that we’ve had positive returns,” said Mike Archibald, vice president and portfolio manager at AGF Investments Inc.

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“It’s a nice way to end a pretty good week.”

Investors are feeling the end of the central banks’ aggressive rate hike cycle is near, he said.

“To the extent that the rate hikes become less aggressive… you have a chance to see stocks rise here.”

He said it will be interesting to see if the Fed goes ahead with the planned 75 basis point hike at its next meeting.

“I think this is probably the biggest item that we’re going to see here in the next four weeks. And if there’s a subtle change in how they think about policy, that’s going to have a significant reverberation effect across all asset markets.”

Next week will be pivotal in setting the tone for the rest of the quarter, Archibald said.

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“We have a lot of profit next week in the US and the Canadian market is really starting to take off too, so we’ll pay attention to what companies are telling us.”

Canadian National Railway Company and Canadian Pacific Railway Ltd. report next week, which Archibald says are generally good indicators for the Canadian economy. There are also some major equipment companies, plus utilities and Shopify all releasing financial data next week, he said.

“There’s a lot to chew on for investors,” he said.

“Commentary on what 2023 looks like, I think, will be the most crucial for the direction of stock prices here in the coming weeks.”

The Canadian dollar traded for 72.92 cents in the US against 72.84 cents in the US on Thursday.

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Canadian retail sales for August were released Friday, showing a slight increase in sales, but with warnings that sales are likely to fall in the fall.

Archibald said consumers are likely to be straining their wallets as inflation continues its upward trajectory.

The December crude oil contract rose 54 cents to $85.05 a barrel and the November natural gas contract fell 40 cents to $4.96 per mmBTU.

The December gold contract rose $19.50 to $1,656.30 an ounce and the December copper contract rose 6.4 cents to $3.47 per pound.

This report from The Canadian Press was first published on October 21, 2022.

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

The Canadian Press




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