TORONTO 鈥� sa国际传媒's main stock index was up almost 650 points in a broad-based rally Thursday,while U.S. stock markets also rose after new data showing inflation in the United States eased in October.
The S&P/TSX composite index was up 646.11 points, or 3.34 per cent, at 19,990.36.
In New York, the Dow Jones industrial average was up 1,201.43 points, or 3.70 per cent, at 33,715.37, its biggest points gain since March 4, 2020.
The S&P 500 index was up 207.80 points, or 5.54 per cent, at 3,956.37,while the Nasdaq composite was up 760.97 points, or 7.35 per cent, at 11,114.15.
Markets were up on U.S. inflation data released Thursday, which was softer than expected, said Anish Chopra, managing director with Portfolio Management Corp.
Inflation for the U.S. was 7.7 per cent in October, dipping below eight per cent for the first time since February.聽
Investors are interpreting the data as a sign that inflation in the U.S. has plateaued and may be on its way down, said Chopra.
鈥淚t鈥檚 certainly a risk-on day today, driven by the U.S. CPI print that came in below expectations,鈥� said Chopra.聽
That means investors are optimistic that the Fed will be winding down its quantitative tightening campaign, he said.
鈥淭he markets have been looking for the signs of a Fed pivot, and certainly the market believes that today is one of the days for that,鈥� said Chopra.
鈥淚t appears that the Fed hikes are doing what they're supposed to do, which is to cool inflation, and that rate increases will continue, but at a slower pace.鈥�
The Canadian dollar traded for 74.75 cents US compared with 74.18 cents US on Wednesday.
Inflation is still quite high, warned Chopra, and one month of data doesn鈥檛 tell the whole story.聽
While inflation appears to be moderating in the goods sector, there are concerns it鈥檚 going to be stickier than the Fed would like, embedding itself into wages, said Chopra.聽
However, he said it certainly bodes well for sa国际传媒鈥檚 upcoming inflation data release next week.聽
鈥淲hen you look at sa国际传媒 and the United States, the central banks seem to have been fortunate enough, at least so far, to have 鈥� inflation plateau and keep the economy growing at a very slow pace.鈥澛�
The December crude contract was up 64 cents at US$86.47 per barreland the December natural gas contract was up 37 cents at US$6.24 per mmBTU.
The December gold contract was up US$40 at US$1,753.70 an ounce and the December copper contract was up six cents at US$3.76 a pound.
This report by The Canadian Press was first published Nov. 10, 2022.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
Rosa Saba, The Canadian Press
