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The TSX ended the day up by 0.33 per cent, securing its eighth-straight day of gains.

Industrial stocks added 0.75 per cent after following Bombardier’s raised full-year guidance on robust private plane demand.

Energy stocks closed 1.34 per cent higher, tracking gains in oil due to better-than-expected Q4 economic data out of China, boosting hopes that product exports, crude imports and consumer demand will normalize following the end of its restrictive COVID containment policy.

WTI was up by 1.57 per cent to US$81.11 per barrel as equity markets closed for the day. The oil market’s upside will largely depend on who can step up to the plate to meet recovering Chinese demand, with well-positioned producers set to benefit from energy’s ongoing pandemic resurgence over the next 12 months.

The TSX’s eight-day milestone can be attributed to encouraging inflation data from Statistics Canada. Earlier today, the institution detailed December’s 0.5 per cent fall in CPI from the month prior to 6.3 per cent YoY, which is down from 8.1 per cent in June. December’s contraction was largely due to a 13.1-per-cent drop in the price of gasoline, with all provinces notching lower YoY CPI for the month.

Lower gas prices were offset by increases in mortgage interest (18 per cent YoY), rent (5.8 per cent YoY), clothing and personal care items. The cost of food has been stable at around 11 per cent YoY for the past 5 months.

December’s inflation reading marks the largest downward move since April 2020, raising the probability that the Bank of Canada will institute a lower 25-basis-point rate hike during its meeting on January 25th. A growing number of analysts see an outright pause in the tightening cycle soon thereafter.

The central bank raised its benchmark interest rate by 400 basis points in 9 months through 2022 to 4.25 per cent.

Down south, U.S. stocks inched lower as investors continue to grapple with Federal Reserve policy and its effects on earnings season. Among the 33 S&P 500 companies that have released earnings, 25 have beaten analysts’ estimates, helping global equities attain their best start to a year since 1988.

Year to date, the TSX has risen by 5.17 per cent, compared to 2.61 per cent for the U.S., 4.47 per cent for Developed International and 4.82 per cent for Emerging Markets.

Market movers

Emboldened by improving Canadian inflation data, our readers have broadened their playing field to include commodity companies, which can still benefit from higher prices, as well as technology plays that may see returning risk-on sentiment propel their growth plans forward. Stories from three notable issuers are linked below:

Flying Nickel (FLYN) has reported multiple platinum and palladium intersections of up to 9.4 g/t from the Minago Project in Canada’s Thompson Nickel Belt.

Transition Metals (XTM) reported assays from a shallow reverse-circulation drill program at its Pike-Warden Property in Yukon. All three holes intersected significant silver values near surface.

Finally, PanGenomic Health’s (NARA) subsidiary, Mindleap Health, is developing an all-in-one app and telehealth platform for holistic mental wellness set to launch this quarter.

Notable capital raise announcements so far this week feature Heliostar Metals, bettermoo(d) Food and Lycos Energy.


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