TORONTO — Canada's main stock index gained almost 1.4 per cent Wednesday on broad-based gains, while U.S. markets rose further.
The S&P/TSX composite index was up 264.21 points at 19,571.1.
In New York, the Dow Jones industrial average was up 526.74 points, or 1.6 per cent, at 33,376.48. The S&P 500 index was up 56.82 points, or 1.49 per cent, at 3,878.44, while the Nasdaq composite was up 162.26 points, or 1.54 per cent, at 10,709.37.
It was a slow day on the TSX, said Michael Currie, senior investment adviser at TD Wealth. Investors appeared to shrug off Canadian inflation data released Wednesday even though it fell short of some analysts’ expectations, he said.
Inflation was 6.8 per cent in November, down from 6.9 per cent in October but missing the expected 6.7 per cent.
The slight downward shift in inflation was mainly due to gas prices, while some core inflation markers were actually higher. All this points to another potential rate hike by the Bank of Canada in the new year, said Currie, which investors were hoping wouldn’t happen if inflation sank more significantly.
“This certainly gives them incentive to keep going, unfortunately,” said Currie.
Markets were up by similar percentages in Canada and the U.S., pointing to more global factors affecting investors rather than just inflation, said Currie.
In the U.S., a new report showed consumer confidence is holding up better than expected, which could be contributing to the gains, Currie said.
The Canadian dollar traded for 73.46 cents US compared with 73.42 cents US on Tuesday.
The February crude contract was up US$2.06 at US$78.29 per barreland the January natural gas contract was up less than a cent at US$5.33 per mmBTU.
Oil had a banner day price-wise, and though the TSX saw broad-based gains it was energy stocks that helped it rise higher, with the TSX energy index up 2.72 per cent.
December is normally the best month for markets, but that’s not been the case so far in 2022, said Currie. However, the S&P 500 and the Dow are on track for their first quarterly gains of the year, he added.
He speculated that investors might be doing some last-minute holiday shopping, buying up stocks during the month’s lows which could contribute to the upward trend Wednesday.
The February gold contract was unchanged at US$1,825.40 an ounceand the March copper contract was up a penny at US$3.81 a pound.
This report by The Canadian Press was first published Dec. 21, 2022.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
Rosa Saba, The Canadian Press
