TORONTO 鈥� Broad-based strength led by base metals helped sa国际传媒's main stock index gain more than 100 points on Tuesday, while U.S. markets muddled to a mixed close ahead of highly anticipated inflation data coming this week.聽
Markets continued in their holding pattern ahead of an action-packed Wednesday that will see fresh data on inflation for the U.S. and an interest rate decision from the Bank of sa国际传媒.聽
The S&P/TSX composite index closed up 101.48 points at 22,361.78.
In New York, the Dow Jones industrial average was down 9.13 points at 38,883.67. The S&P 500 index was up 7.52 points at 5,209.91, while the Nasdaq composite was up 52.68 points at 16,306.64.
Wednesday's U.S. consumer inflation report, plus more inflation data later in the week, will give more data points for the U.S. Federal Reserve to consider as it weighs when to start cutting its overnight rate.聽
鈥淓verybody鈥檚 hanging on (the inflation report) because everybody wants to know, which way is the Fed going?鈥� said John Zechner, chairman and lead equity manager at J. Zechner Associates.
Markets have pared back their expectations for how many times the central bank could cut this year to three, but even that may be a lofty goal, said Zechner.聽
鈥淚f these inflation numbers stay high, and the economy stays pretty good, you could be looking at two, one or no rate cuts,鈥� he said.聽
The Fed 鈥渨ants to cut,鈥� he said, but is concerned about reigniting inflation.聽
The Bank of sa国际传媒 isn鈥檛 expected to start cutting its rate on Wednesday, said Zechner, and he doesn鈥檛 think it will shift from the hawkish rhetoric it鈥檚 been giving out. Despite sa国际传媒鈥檚 economy being much weaker than the U.S., inflation is proving stubborn.
鈥淚t鈥檚 a long path back to two per cent (inflation), and it鈥檚 taking longer than maybe they expected,鈥� Zechner said.聽
Rising commodity prices like energy and gold pose an additional risk to inflation, he added. 聽
However, the strength in commodities has been helping Canadian markets 鈥減lay catch-up,鈥� he said.聽
On Friday, U.S. banks will kick off earnings season. Earnings expectations have come down since the start of the year, said Zechner, despite the months-long rally in equities, so earnings season will be a 鈥渓itmus test鈥� to see whether companies can back up those gains.聽
The commentary from the banks on things like loan loss provisions will be important, he added.聽
The Canadian dollar traded for 73.65 cents UScompared with 73.63 cents US on Monday.
The May crude oil contract was down US$1.20 at US$85.23 per barrel and the May natural gas contract was up three cents at US$1.87 per mmBTU.
The June gold contract was up US$11.40 at US$2,362.40 an ounceand the May copper contract was up one cent at US$4.29 a pound.
-- With files from The Associated Press
This report by The Canadian Press was first published April 9, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)聽
Rosa Saba, The Canadian Press
