stock
Canada’s main stock indexes opened higher on Thursday, helped by gains in materials stocks. On Wall Street, major indexes turned positive after the Fed-led decline in the previous session as traders awaited results from major tech companies after the close.
As of 9:32 a.m. ET, the Toronto Stock Exchange’s S&P/TSX Composite Index was up 94.23 points, or 0.45 percent, at 21,116.11.
In the United States, the S&P 500 index rose 15.46 points, or 0.32%, to open at 4,861.11, while the Nasdaq Composite Index rose 90.01 points, or 0.59%, to 15,254.02.
The Dow Jones Industrial Average rose 25.04 points (0.07%) to $38,175.34.
“The Fed left rates unchanged, but the statement was less dovish than expected,” said Michael Hewson, chief market analyst at CMC. It was negative,” he said. This was announced by British Markets.
“As far as the statement is concerned, reference to the possibility of further interest rate hikes has been removed, while the central bank has expressed greater confidence in its guidance that inflation is sustainably trending towards 2%. He said he doesn’t expect a rate cut would be appropriate until he gets a “%.” ”
Futures linked to the Fed’s key rate currently suggest a probability of a March rate cut at about 36%, but Powell’s press conference increased expectations for a May rate cut.
Late Thursday morning, the Bank of England announced it would keep its key interest rate unchanged. According to Reuters, six out of nine members of the Monetary Policy Committee voted to keep interest rates at 5.25%, the highest level in 15 years. Jonathan Haskell and Katherine Mann voted in favor of a 0.25 percentage point rate hike, while Swati Dhingra voted in favor of a rate cut of the same size.
On the corporate front, profits continue to dominate on both sides of the border.
In Canada, investors this morning announced earnings results for telecommunications giant Rogers Communications and luxury coat company Canada Goose.
The Globe’s Aleksandra Posadski reported this morning that Rogers’ fourth-quarter profit fell 35% to $328 million, but sales rose 28% to $5.34 billion. Earnings for the three months ended Dec. 31 were 62 cents per share, down from $1.00 per share in the year-ago period. Earnings, adjusted for one-time items, came to $1.19 per share, beating analysts’ estimates of adjusted earnings of $1.12.
The performance of tech companies continues to be closely watched on Wall Street, with giants Amazon, Apple and Meta all scheduled to release their quarterly results after the close of trading.
“It would be better to take investors by surprise,” Swissquote senior analyst Ipek Ozkardeskaya said in an early note. “Otherwise, the decline in tech stocks will gain further momentum, even as yields decline.”
Shares of Google’s parent company Alphabet fell earlier this week after disappointing holiday ad sales, even though its latest quarter’s revenue and profit beat analysts’ expectations.
Overseas, the pan-European STOXX 600 index was down 0.08% by midday. Britain’s FTSE 100 index rose 0.19%. Germany’s DAX fell 0.10% and France’s CAC40 fell 0.60%. New figures released on Thursday showed eurozone inflation slowed to 2.8% per euro in January, from 2.9% in December, in line with market expectations.
In Asia, Japan’s Nikkei Stock Average fell 0.76%. Hong Kong’s Hang Seng rose 0.52%.
merchandise
Oil prices rose in early trading as markets digested the Fed’s latest comments and received support from China’s efforts to support the economy.
Early pre-market, Brent’s daily range was between US$80.16 and US$1.29. West Texas Intermediate ranged from US$75.44 to US$76.61.
“Oil prices have rebounded over the past few sessions after surging to the start of the year,” Craig Erlam, senior analyst at OANDA, said in a recent note. “Tensions in the Middle East and disruption in the Red Sea appear to be factors here, but there is also the fact that countries continue to persevere with high interest rates, so rates could soon fall.”
He said the United States was on the front lines and could be headed for a “fairy tale ending” of a strong, growing economy, low inflation and falling interest rates.
“This could lead to higher-than-expected demand for oil this year and, in turn, higher prices,” he said.
Amid fears of court-ordered liquidations, Reuters reported this week that a Chinese state-run real estate project received its first development loan under new measures, and news that two major cities had also eased curbs on home purchases. Also supported the price. of real estate developer Evergrande.
Meanwhile, the OPEC+ ministerial committee recommended no changes to the group’s oil production plans at a meeting on Thursday. Key ministers from the Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led allies, known as OPEC+, met online to discuss market fundamentals.
In other commodities, spot gold rose 0.3% by early Thursday morning to US$2,043.80 an ounce. On Wednesday, gold hit its highest level in more than two weeks at US$2,055.89, before combining for gains and closing 0.1% higher. US gold futures fell 0.3% to $2,061.20.
currency
The Canadian dollar rallied against a group of global currencies and held near recent highs, while the Canadian dollar fell after the Federal Reserve signaled that a March interest rate cut was unlikely.
Earlier in the market, prices ranged from $74.26 to $74.52 on the day.
In global markets, the U.S. dollar index, which measures the dollar’s weight against certain currencies, rose 0.39% to 103.67.
The euro fell 0.17% to US$1.0802. The British pound fell 0.28% to US$1.2653 ahead of the Bank of England’s interest rate decision.
In bonds, the yield on the US 10-year Treasury note fell to 3.944%.
Other company news
Elon Musk wants tesla Investors are planning to move the company’s listing to Texas after a Delaware court ruled that he should not receive billions of dollars in compensation. The electric car company’s CEO said early Thursday that Tesla will seek a shareholder vote on whether to change its corporate registration to Texas, where its physical headquarters are. “Tesla intends to immediately hold a shareholder vote to transfer his corporate status to the State of Texas,” Musk wrote on his social media platform X (formerly known as Twitter). –Associated Press
canada goose holdings Luxury goods makers are betting on a sharp recovery in China, a key market to weather the U.S. economic slowdown, and forecast fourth-quarter sales to beat analysts’ expectations on Thursday, including LVMH and Luxury brands such as Cartier owner Richemont are signaling a recovery in sales Despite being the world’s second-largest economy, China faces a real estate crisis and high youth unemployment. . Canada Goose’s Asia-Pacific revenue increased 62% to $270.7 million in the third quarter, compared to a 13% increase in the previous quarter. –Reuters
economic news
Bank of England monetary policy announcement
(8:30 a.m. ET) New U.S. unemployment claims for the week of January 27.
(8:30 a.m. ET) Fourth quarter U.S. productivity and unit labor costs.
(9:30 a.m. ET) January S&P Global Manufacturing PMI for Canada.
(9:45 a.m. ET) U.S. S&P Global Manufacturing PMI for January.
(10 a.m. ET) U.S. ISM Manufacturing PMI for January.
(10 a.m. ET) U.S. construction spending in December.
Partnership with Reuters and Canadian Press