Canada’s main stock index seemed on track to snap an eight-day losing streak as TSX moved higher on Monday after Air Canada’s annual profit forecast lifted the industrial sector while investor sentiment was optimistic ahead of a week full of scheduled economic data.
The TSX Composite faded from its highs of the morning, but stayed solid 56.97 points to register at noon at 18,794.36.
The Canadian dollar poked ahead 0.15 cents at 72.28 cents U.S.
Materials stocks are likely to get a boost as most non-ferrous metal prices rose with stimulus measures from top consumer China boosting sentiment, with low inventories and solid demand further supporting copper prices.
Energy shares, however, may witness a decline after oil prices slipped more than 1% as concerns eased about the Israel-Hamas war affecting supply from the region.
Air Canada said it expects 2023 core profit towards the higher range of its previous forecast after strong demand for international travel helped the carrier beat third-quarter profit estimates. Shares in “The Maple Leaf Airline” dipped 31 cents, or 1.9%, to $16.41.
Panama will be holding a referendum to decide whether to scrap a contract with First Quantum’s local unit after days of protests by thousands of people who have opposed the open-pit copper mine project. The miner dropped $7.41, or 26.5%, to $20.55, to the bottom of the index.
Canadian Solar shares were down $1.00, or 4.9% to $19.21. after the Ontario-based company said it would invest $800 million to build a solar photovoltaic (PV) cell production facility in Jeffersonville, Indiana.
ON BAYSTREET
The TSX Venture Exchange faded 3.55 points to 516.96.
All but three of the 12 TSX subgroups were in “plus” territory midday, with consumer staples up 1.8%, while information technology issues surged 1.4%, and financials bettered themselves 1.1%.
The three laggards were materials, shrinking 2.6%, while gold dulled in price 1.6%, and energy lost 0.8%.
ON WALLSTREET
The S&P 500 tried to climb out of correction territory Monday as traders braced for a big week filled with a Federal Reserve rate decision, jobs report and Apple’s earnings report.
The Dow Jones Industrials grabbed 360.76 points, or 1.1%, to pause for lunch Monday at 32,778.33.
The S&P 500 index hiked 32.41 points to 4,149.74.
The NASDAQ 115.45 points to 12,758.46.
Communication services stocks outperformed, with the S&P 500 sector last up by 2%. Mega-cap tech stock stocks Alphabet and Meta Platforms were up by more than 2%, each.
Those moves come after the S&P 500 fell into correction territory last week. The broader index shed 2.5% for the week to put it down by more than 10% from its 2023 closing high. It’s off 3.2% for October, on pace for its third-straight negative month which would be its first such streak since 2020 as the pandemic struck.
Apple will report earnings Thursday after the bell. The S&P 500’s largest member is in a correction itself, down 15% from its 52-week high.
The Federal Reserve decision looms Wednesday, when the central bank is widely expected to hold its benchmark interest rate at the same level. With surging interest rates as the main culprit of this stock market correction, investors will be hoping the Fed signals it could be done raising rates. Traders expect the Fed to be done raising rates at least for 2023.
Prices for the 10-year Treasury faded, raising yields to 4.89% from Friday’s 4.84%. Treasury prices and yields move in opposite directions.
Oil prices collapsed $2.99 to $82.55 U.S. a barrel.
Gold prices leaped $10.50 to $2,009.