TSX rises on optimism from China
2022.12.09 10:51
TSX rises on optimism from China
Budrigannews.com – On Friday, hopes of a recovery in demand in China following an easing of its stringent COVID-19 restrictions drove a rise in Canada’s main stock index, which was supported by shares that are commodity-linked. Additionally, crude and metal prices increased.
The S&P/TSX composite index on the Toronto Stock Exchange was up 100.76 points, or 0.5 percent, at 20,069.95 at 10:07 a.m. ET (15:07 GMT). Nevertheless, the benchmark index is on track to experience its greatest weekly decline in over two months.
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On higher crude and gold prices, commodity-linked stocks were among the top gainers, with energy and materials sub-indexes rising 0.6% and 1.1%, respectively. GOL/] [O/R] Investors are getting ready for a big week because major central banks, like the European Central Bank and the U.S. Federal Reserve, are going to say how they feel about interest rates.
Friday’s data showed that producer prices in the United States increased slightly more than anticipated in November. However, the underlying trend of inflation is slowing, which may allow the Federal Reserve to slow its rate hikes.
According to Allan Small, senior investment adviser at Allan Small Financial Group, “You have this balancing act that the Fed and the Bank of Canada need to do, bring down the economy slowly to bring down inflation, but don’t bring it down too much where the whole country goes into a deep recession.”
On Wednesday, the Bank of Canada increased its overnight lending rate by 50 basis points.
Shopify (NYSE:) and other technology stocks contributed to Friday’s gains for the benchmark index. gaining 4.1 percent from Wells Fargo (NYSE:) increased its price goal.
With a loss of 5.6% on the year, the TSX has outperformed the US, while the S&P has lost 17%.
Laurentian Bank of Canada, which beat its fourth-quarter profit estimate, rose 7.2% to top the TSX among single stocks.
