S&P/TSX composite posts small gain Thursday as U.S. markets close for Thanksgiving

TORONTO – Canada’s main stock index made small but broad-based gains Thursday on a slow day for markets amid the Thanksgiving holiday south of the border. Volumes were light on the TSX Thursday as the US

TORONTO – Canada’s main stock index made small but broad-based gains Thursday on a slow day for markets amid the Thanksgiving holiday south of the border.

Volumes were light on the TSX Thursday as US markets were closed for the holiday, and with New York closing early Friday it was likely to be a slow end to the week, said Michael Currie, senior investment adviser at TD Wealth.

The S&P/TSX composite index rose 61.81 points to 20,344.07, with small gains in most TSX sectors.

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A story for the markets was the Bank of Canada governor’s appearance before MPs in Ottawa on Wednesday night, said Currie, where he stuck to his talking points and reiterated the need to continue raising the rates.

Tiff Macklem said the Bank of Canada is on track to lose money for the first time in its history but insisted it will not change the central bank’s policy to fight inflation. Currie says this new development is a sign of the current unprecedented times, but Macklem “seems to downplay it.”

On the other hand, the former governor of the Bank of Canada Stephen Poloz said in a speech Thursday that the economy is now more sensitive to interest rates than a decade ago.

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The Canadian dollar traded at 74.97 cents US compared to 74.67 cents US on Wednesday.

The January crude oil contract was down US$3.01 cents at US$77.94 per barrel and the January natural gas contract was down 30 cents at US$7.71 per mmBTU.

Talks of a cap on Russian oil prices continue and U.S. inventories were higher last week, Currie said. He said he expects both of these factors to put downward pressure on oil, but said prices won’t go down that Thursday.

Currie noted that while the TSX is down only about four percent year-to-date, much of the upside has been borne by big gains in energy.

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“It’s a really, really big gain for the year,” he said.

Next week may see a little more volatility as usual near the end of the month, Currie said, but he’s relatively optimistic about the rest of 2022.

“Historically, the signs would say we’re probably in good shape,” he said.

The December gold contract was up US$5.70 at US$1,745.60 an ounce and the December copper contract was up less than half a cent at US$3.62 a pound.

This report in The Canadian Press was first published Nov. 24, 2022.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)

The Canadian Press



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