Canada’s main stock index moved higher on Tuesday, supported by a rise in energy stocks on higher oil prices, while data showed the Canadian economy flatlined in August and likely slipped into a shallow recession in the third quarter.
The TSX Composite squeezed higher 12.27 points to start out Tuesday at 18,869.03
The Canadian dollar sank 0.19 cents at 72.11 cents U.S.
On the economic slate, Statistics Canada reported gross domestic product was essentially unchanged in August as services-producing industries edged up 0.1% while goods-producing industries contracted 0.2%.
ON BAYSTREET
The TSX Venture Exchange inched higher 0.91 points to 514.35.
Six of the 12 TSX subgroups were positive in the first hour Tuesday, with real-estate gaining 0.5%, while utilities and consumer discretionary stocks each ahead 0.2%.
The five laggards were weighed most by materials, down 0.6%, information technology, off 0.2%, and industrials, sliding 0.1%. Health-care stocks were unchanged.
ON WALLSTREET
Stocks slid on Tuesday, with traders set to close out a dismal month that saw Treasury yields surge to multi-year highs.
The Dow Jones Industrials faded 76.62 points, to begin Tuesday at 32,928.96, after Monday’s climb of more than 500 points.
The S&P 500 index fell 8.16 points to 4,158.66.
The NASDAQ sank 68.22 points to 12,721.26.
Earnings season continued Tuesday, with Caterpillar reporting earnings for the third quarter that exceeded estimates. However, Caterpillar said its fourth-quarter revenue would only be “slightly” higher than the year-ago period, worrying investors that it could miss analysts’ expectations. Shares were down more than 5%.
The major averages are set to close out their third-straight losing month. The Dow has declined 2% and the S&P 500 is down about 3%. This marks the first three-month losing streak for both indexes since March 2020. The tech-heavy NASDAQ has declined more than 3% month to date, also on pace for its third negative month in a row.
Wall Street is also keeping a close eye on the Fed’s next decision on interest rates this Wednesday. Fed funds futures pricing suggests a roughly 98% probability that the central bank will keep rates at current levels.
Prices for the 10-year Treasury made small gains, lowering yields to 4.86% from Monday’s 4.89%. Treasury prices and yields move in opposite directions.
Oil prices fell 24 cents to $82.07 U.S. a barrel.
Gold prices added $2.10 to $2,007.70.