Toronto –
Canada’s major stock indices posted a modest gain on Wednesday as strength in energy and technology, among other sectors, outweighed weakness in base metals, amid mixed US markets.
TD Wealth Senior Investment Advisor Michael Curry said the market was “across the board” on Wednesday.
Curry said some sectors are up and some are down, but there is no big pattern in the movement.
The S&P/TSX Composite Index rose 85.76 points to 19,818.85.
In New York, the Dow Jones Industrial Average fell 74.08 points to $33,852.66. The S&P 500 Index fell 1.55 points to 4,376.86, while the Nasdaq Composite Index rose 36.08 points to 13,591.75.
Curry said one of the most notable developments was among semiconductor companies whose stocks were trending downward. Nvidia shares fell 1.8% and Taiwan Semiconductor Manufacturing Co. Ltd. fell 1.14%.
“There are reports that the Biden administration is considering restricting the sale of AI chips to China. So all these stocks have taken a pretty big hit,” Curry said.
Investors were also watching Federal Reserve Board member Jerome Powell join other central bank leaders to attend the European Central Bank’s monetary policy meeting in Sintra, Portugal.
“The bottom line is that policy hasn’t been restrictive enough for long enough,” Powell said at a panel discussion on Wednesday.
Most of the central bank leaders on the panel agreed that a strong labor market was contributing to higher prices and that interest rates are expected to continue rising in the fight against inflation.
“By and large, they were still talking tough,” Curry said. “They have vowed to keep fighting inflation. They haven’t seen enough evidence of a slowdown.”
In Canada, meanwhile, energy stocks rose as oil prices rose on news that US oil inventories fell short of expectations last week.
Curry said gold prices took a pretty big hit on Wednesday, hitting a three-month low after a solid rally, blaming central bank officials’ rhetoric on interest rates. .
“That’s bad for gold. So at least the market seems to indicate that the big rally is still to come,” he said.
Gold for August delivery fell $1.60 to $1,922.20 an ounce.
The Canadian dollar traded at 75.45 cents to US 75.90 cents on Tuesday.
Crude oil contracts rose $1.86 to $69.56 per barrel in August, while August natural gas contracts fell 12 cents to $2.67 per mmBTU.
Copper for September delivery fell 5 cents to $3.74 per pound.
– with files from Associated Press
This report by the Canadian Press Agency was first published on June 28, 2023.
