TORONTO 鈥� Gains in energy stocks helped buoy sa国际传媒's main stock index Tuesday, while U.S. markets also rose, as investors in both countries await big economic news Wednesday.
Trading on Tuesday was the calm before the storm, with markets ticking upwards ahead of inflation data to be released in the U.S. and a central bank meeting in sa国际传媒, said Anish Chopra, managing director with Portfolio Management Corp.
The S&P/TSX composite index was up 56.11 points at 19,878.56.
In New York, the Dow Jones industrial average was up 317.02 points at 34,261.42. The S&P 500 index was up 29.73 points at 4,439.26,while the Nasdaq composite was up 75.22 points at 13,760.70.
Wednesday will see the latest inflation print in the U.S., ahead of the Federal Reserve鈥檚 next interest rate decision later in July.
鈥淚t鈥檚 another data point for them to think about before their meeting,鈥� said Chopra.
Economists expect inflation will have continued to moderate, but it鈥檚 not the only thing the central bank is looking at as it weighs where to take rates next.
With data showing the labour market is still strong, a rate hike in July is likely regardless of what the inflation release shows, said Chopra. But it鈥檚 what comes after July that鈥檚 less certain, he said.
鈥淭he Fed鈥檚 really concerned about the fact that inflation could get embedded in the economy, especially as it relates to wages.鈥�
On the other side of the border, the Bank of sa国际传媒 is widely expected to announce another rate hike Wednesday, said Chopra.
sa国际传媒鈥檚 in a similar boat to its U.S. neighbours, he said, with a robust job market despite inflation moderating in certain areas.
Oil put on another strong showing Tuesday, hovering near US$75 a barrel.
鈥淚f you look at some of the demand forecasts, they're just showing higher potential for future demand in oil,鈥� said Chopra.
That鈥檚 despite the ongoing weakness in China鈥檚 economy, he said, noting that recent supply cuts are helping prop up the price of crude.
The August crude contract was up US$1.84 at US$74.83 per barrel and the August natural gas contract was up six cents at US$2.73 per mmBTU.
The Canadian dollar traded for 75.41 cents US compared with 75.28 cents US on Monday.
The August gold contract was up US$6.10 at US$1,936.00 an ounce and the September copper contract was down two cents at US$3.77 a pound.
This report by The Canadian Press was first published July 11, 2023.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
Rosa Saba, The Canadian Press
