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S&P/TSX composite barely up on the day but down for the quarter


A volatile trading day capped the quarter as an early evaporating rally sent the S&P/IndexTSX composite index with the lowest gain, while the US market was deeply in the red.

The trade saw North American markets give up more than 1% gains in the morning session, a symbol of recent sessions that have been scattered but trending lower as investors fear for the future. economy because of the determination of central banks. to make loans more expensive.

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S&P/TSX composite rises with US markets as US Treasury yields retreat

“There were a handful of Fed speakers throughout the week who spoke back today, reinforcing this message that they are firmly on the way,” said Mike Archibald, vice president and portfolio manager. fighting inflation, they keep coming back to that message,” said Mike Archibald, vice president and portfolio manager. with AGF Investments Inc.

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US Federal Reserve Vice Chairman Lael Brainard is the latest, insisting on Friday that the bank will not cut interest rates anytime soon.

“That seems to continue to pour cold water on any upside attempt that the broader market has had,” Archibald said.

The reminder of the Fed’s resolve, coupled with a hotter-than-expected rise in US inflation, was enough to erase early Friday gains.

Ultimately, the S&P/TSX composite closed up 2.38 points at 18,444.22, marking a second straight quarter of declines. The index is now down 15.7% since the end of March.

“It’s certainly been a challenging market for investors, obviously inflation has run high, the bond market is also a challenge, so there’s not a lot of room for investors,” said Archibald. invest hiding here in 2022,” said Archibald.

The Toronto market was spared further losses as it recorded modest gains in the IT, utilities, healthcare and especially materials sectors as investors poured into equities. yellow.

“Gold hasn’t really gone up that much, however, gold stocks are having a really good day. I think there was just a little bit of hiding towards the end of the quarter,” Archibald said.

The S&P/TSX Global Gold Index is up 2.5%, including a 5.5% gain for Kinross Gold Corp. and 3.5% for Barrick Gold Corp.

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The December gold contract itself was up $3.40 at $1,672.00 an ounce and the December contract was down a cent at $3.41 a pound.

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S&P/TSX composite drops more than 100 points, US stock market also falls

The S&P/TSX composite index faces pressure from industry, finance and especially energy as the November crude contract closed down $1.74 to $79.49 a barrel and November natural gas contract fell nearly 11 cents at $6.77/mmBTU.

New York was even worse, with the Dow Jones Industrial Average closing down 500.10 points, or 1.7%, at 28,725.51. The S&P 500 index fell 54.85 points, or 1.5%, to 3,585.62, while the Nasdaq composite fell 161.89 points, or 1.5%, to 10,575.62.

Stocks came under pressure as US Treasury yields and the US dollar rebounded. That put pressure on the Canadian dollar, which was trading at 72.45 US cents, according to XE.com, versus 72.96 US cents on Thursday.

It will take a reversal, or at least a slowdown, of the US dollar’s upside momentum to change investors’ risk appetite, said Archibald.

Looking forward to the third quarter, he expects to see caution heading into earnings season with a lower likelihood of revised guidelines, as happened with Micron Technology Inc. on Thursday night.

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However, overall market sentiment is low enough that even some good news could turn the tide, Archibald said.

“The downside in the market is way too high, so it won’t take a lot of good news to change the narrative to spark another pretty significant rally in the equity markets. What will happen remains to be seen, but the threshold is very low for something good to happen right now. “

© 2022 Canadian Press

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