The TSX closed down by 0.11 per cent supported by higher commodity stocks.
Crude and metals prices acted favorably throughout the trading day in response to the Chinese government’s relaxation of COVID lockdown measures, itself a response to widespread protests.
The S&P/TSX Capped Energy Index lost 0.72 per cent.
The S&P/TSX Capped Materials Index closed down by 0.16 per cent.
The Canadian market has lost roughly 2 per cent this week after the Bank of Canada (BoC) issued a 0.5-per-cent rate hike on Wednesday, raising its benchmark overnight lending rate to 4.25 per cent.
The BoC pointed to declining consumption and a weakening housing market as evidence of the effectiveness of its policy. Its rolling three-month snapshot of underlying prices has also declined.
Language during the meeting suggested an openness to shifting away from aggressive tightening, though the central bank was clear about the economy still operating with excess demand.
Canada’s yield curve remains inverted, which is a historically reliable indication of an oncoming recession. Many economists also see the combination of outsized Canadian consumer debt, geopolitical tensions, and global supply-chain disruptions as a catalyst for a recession in 2023.
As a counterbalancing force, Canada’s tight labour market may support wage growth beyond the reach of monetary policy, meaning higher inflation for longer than the first half of 2023, which is when the BoC predicts a stall in growth.
Interest rate announcements from the U.S. Fed and the European Central Bank will likely determine market rhythms over the course of next week.
With many Canadian investors bracing for an imminent slowdown, our reader community has spent the past week considering companies uniquely positioned to thrive in a bear market environment.
RevoluGROUP Canada’s (TSXV:REVO) RevoluSEND and RevoluTRANSFER extend financial reach to 120 countries
RevoluGROUP Canada announced that RevoluSEND and RevoluTRANSFER now include the United Kingdom.
The U.K. is RevoluSEND’s 120th remittance country.
CEO Steve Marshall sat down with Daniella Atkinson to discuss the news.
Besides benefitting from a globally diversified customer base, the fintech company has been experiencing a tailwind in the form of higher interest rates raising lending revenues in the banking sector.
It is also in the midst of active takeover discussions with a European financially regulated entity allied to a U.A.E.-based financial consultancy firm, which could provide it with non-dilutive growth capital to further increase market share.
RevoluGROUP Canada (REVO) closed up by 3.13 per cent over the past week, trading at $0.33 per share.
Nextech AR Solutions (CSE:NTAR) (OTCQB:NEXCF) announces record-setting views for a single 3D/AR ad
Nextech AR Solutions (NTAR) has announced a record-setting number of views for a single 3D/AR ad.
The client, Hearst UK, used a 3D model of a Dr. Martens boot created by Nextech for an ad campaign, which garnered over 1 million 3D model views on the site.
This milestone with established brand positions the company for increased eCommerce advertising revenue as it seeks to establish itself as the leading global 3D modelling provider.
CEO Evan Gappelberg joined Daniella Atkinson to speak about the news, which follows an over 192-per-cent increase in Q3 3D modelling revenue compared to Q2 2022, and the spin-out of ARway, its metaverse spatial computing platform.
Nextech stands at the forefront of augmented reality, 3D modelling, holograms and 360° portals, all of which are shaping the future of online commerce and online communities. The devaluing of long-term technology plays, given current market pessimism, may present an attractive entry point contingent on thorough due diligence.
Nextech AR Solutions (NTAR) closed down by 3.12 per cent over the past week, trading at $0.93 per share.
ION Energy (TSXV:ION) sees impressive results at Urgakh Naran
ION Energy (ION) shared drilling results and an exploration update from its Urgakh Naran Project in Mongolia.
Notable drill core results include 123 m at 278 ppm lithium, 100 m at 362 ppm lithium, and 71.4 m at 360 ppm lithium.
CEO Ali Haji stated that “The Urgakh Naran Basin is showing the potential to host significant brine accumulations in close proximity to the national electric grid and critical development infrastructure.”
He sat down with Sabrina Cuthbert to highlight the results.
Given skyrocketing lithium prices due to EV demand – over $74,000 per tonne in China as of October 2022, reaching up to 10x historical levels – investors are exposed to considerable upside potential upon the discovery of a reliable domestic supply of the sought-after metal.
Further positive results toward a case for economic development could easily turn around the share price, which has been volatile in line with the optionality embedded in most microcap mineral explorers.
ION Energy (ION) closed up by 11.11 per cent over the past week, trading at $0.20 per share.