S&P/TSX composite partially recovers but closes at 16-month low

TORONTO –

Canada’sMain stock index partiallyRecovery from morning weakness but still closed atAfter the big losses in its three largest sectors, its 16-month-old lowest level was reached.

TheHeavyweight financials and energy sectors suffered a decline of between 1.8-3.2 percent ThursdayEight of the 11 major sector on the TSX were affected.

Alllarge CanadianBanks were weaker due to a drop of 5.6% Royal BankAfter disappointing earnings reports from U.S. bank, the JP report was released. JPMorgan Chase & Co. ?. Morgan StanleyFears of an economic downturn are supported by missed expectations

Macan NiaThe co-chief senior investor strategist at Manulife Investment Management, saidThe weakness was primarily due to activity in their capital markets businesses. This makes sense considering we are in a bear market, and IPO activity has slowed down.

“Some analysts here, some investors here are expecting the Canadian banks to also be in a challenging environment from a capital market perspective … and that will challenge their earnings moving forward,”He saidInterview.

Nia saidInvestor sentiment is also an important factor CanadianBanks as the BankThis is Canada’sInflation can be a problem, and interest rates are a major driver of mortgage lending. creditCar loans, general activity and.

“The primary driver for the weakness in the financials is the concern of the odds of recession increasing and that impact being the Canadian banks’ financial positions.”

MaterialsThe share price of lower metals was 3.1% lower than the shares First Quantum Minerals Ltd. off 8.2 per cent.

The AugustGold contract fell by US$29.70 atUS$1,705.80 per ounce SeptemberCopper contract fell 11.1 cents at US$3.21 a pound.

Energy partiallyAfter falling to an intraday low, crude oil prices rose and they recovered lowUS$90.56, which is the lowest level since 2005 February. The AugustCrude contract was down 52 cents atUS$95.78 a barrel and the AugustNatural gas contract fell 8.9 cents at US$6.60 per mmBTU.

Imperial OilWhile losing 3.2 percent Cenovus Energy Inc. It was 2.6% lower.

The CanadianThe dollar was traded for 76.12 US dollars, an increase from the early days. lowUS 75.62 Cents, the lowest level since 2000. Nov. 4, 2020 and compared with US 77.07 Cents on Wednesday.

Overall, the S&P/TSX compositeAfter hitting an intraday high, index fell by 286.13 points or 1.5% to 18,329.06. low18.169.86

In New York?, Dow JonesThe industrial average dropped by 142.62 percent at 30,630.17. The S&P 500 index was down 11.40 points atThe total is 3,790.38, Nasdaq compositeScored 3.61 more points at 11,251.19.

North AmericanStock markets, particularly in the United States, have rebounded since then Federal ReserveGovernor Christopher Waller saidThe market was “kind of getting ahead of itself”You can increase your chances of getting a full percentage point increase in interest rates within two weeks.

St. Louis Federal Reserve President James BullardAlso, reportedly saidHe preferred to raise interest rates by 75 basis point.

“I think that’s giving the market some reprieve that we might not get a full 100 basis points. It’s more likely to be in that 75-basis-point range, and the market seems to like that,” Nia added.

TheA report outlined the possibility of more aggressive rate increases. ThursdayIn the United States, producer prices rose more than anticipated in JuneDespite rising prices for energy products, underlying inflation seems to be at a peak. ThatFollow these steps June’sInauguration of the consumer price index at 9.1 per cent on WednesdayThis is the highest level in over 40 years.

MuchThe high inflation numbers are due to rising energy prices. These have since fallen and should result in a decrease in future numbers. said Nia.

ThisReport by The Canadian PressPublished for the first time July 14, 2022