TORONTO 鈥� sa国际传媒鈥檚 main stock index closed up almost 300 points Monday ahead of Statistics sa国际传媒 releasing its latest inflation data on Wednesday, while U.S. markets were also up.聽
The S&P/TSX composite index was up 294.67 points at 18,621.02.
In New York, the Dow Jones industrial average was up 550.99 points at 30,185.82. The S&P 500 index was up 94.88 points at 3,677.95, while the Nasdaq composite was up 354.41 points at 10,675.80.
鈥淲e鈥檙e seeing a rally to kick off the week as we see some stabilization in the bond market,鈥� said Angelo Kourkafas, an investment strategist at Edward Jones. 鈥淏ond yields are slightly lower, we have seen the U.S. dollar pull back against other major currencies.鈥澛�
The Canadian dollar traded for 72.83 cents US compared with 72.17 cents US on Friday.
News that the British government pulled a reversal on its suite of tax cuts helped the pound rebound, he said.聽
鈥淭hat was the catalyst for some positive sentiment globally,鈥� said Kourkafas.聽
Earnings from the Bank of America were better than expected, Kourkafas noted, as third-quarter earnings season kicks off.聽
鈥淪o far there is the theme of resiliency in corporate profits, as at the same time, expectations have been lowered heading into the earning season,鈥� he said. 鈥淭he fact that we have low expectations and results so far seem to be OK despite the very challenging economic backdrop, that is providing some relief.鈥澛�
For earnings season in sa国际传媒, "investors are going to be looking at results from Canadian banks to gauge the health of the economy and the consumers," he said.
Canadian inflation data for September is coming out on Wednesday. Though recent U.S. inflation was hotter than investors had hoped, if the Canadian inflation numbers show signs of slowing that may mean a smaller-than-anticipated rate hike from the Bank of sa国际传媒, said Kourkafas.聽
However, he said a 75-point hike is still very much an option, depending on the inflation data and other factors.聽
The Bank of sa国际传媒 business and consumer surveys that came out Monday were consistent with the idea that the central bank is not done raising rates, said Kourkafas.聽
"In our view, we're getting closer to the end of the tightening campaign for the Bank of sa国际传媒 than the beginning."
The December crude oil contract was down 12 cents at US$84.53 per barrel and the November natural gas contract was down 45 cents at US$6 per mmBTU.
The December gold contract was up US$15.10 at US$1,664 an ounce and the December copper contract was down nearly a penny at US$3.42 a pound.
This report by The Canadian Press was first published Oct. 17, 2022.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
The Canadian Press
