September 28, 2022
  • September 28, 2022

Indices benefit from central bank announcements

By on September 7, 2022 0

(MENAFN- Baystreet.ca) Indexes advantage on central bank announcements
Bausch, B2Gold in a nutshell

Gains returned to North American markets on Wednesday, helped by favorable news from central banks in Canada and the United States.
The TSX gained 153.29 points to end Wednesday’s session at 19,241.44.
The Canadian dollar regained 0.22 cents to 76.23 cents US
Bausch Health Companies led the healthcare issues as this group was at the forefront of the winning subgroups. Bausch jumped 57 cents, or 6.8%, to $9.09, while cannabis company Canopy Growth added 19 cents, or $4.46.
Gold stocks also jumped, with B2Gold taking 28 cents, or 6.9%, to $4.37, while Iamgold pegged 12 cents, or 7.8%, to $1.65.
In technology, Telus International jumped $1.31, or 3.5%, to $38.89, while Shopify gained $1.36, or 3.5%, to $40.61 .
Only energy stocks held up, with Vermilion Energy falling $2.63, or 7.9%, to $30.52, while Athabasca Oil lost 19 cents, or 7.9%, to $2.22 .
Economically, Canada’s merchandise exports fell 2.8% in July, while imports fell 1.8%.
As a result, Canada’s merchandise trade surplus with the world narrowed from $4.9 billion in June to $4.1 billion in July. So far in 2022, trade surpluses have been observed every month.
The Bank of Canada raised its target for the overnight rate to 3.25%, up three-quarters of a percentage point, with the bank rate at 3.5% and the deposit rate at 3.25 %.
The IVEY PMI came in at 60.9 in August, a sharp increase from July’s 49.6, but still below the August 2021 figure of 66.
ON BAYSTREET
The TSX Venture Exchange recovered 8.07 points, or 1.3%, to 631.64.
All but one of the 12 TSX subgroups were up at the end of the day, with healthcare climbing 3.1%, gold 2.8% and information technology 2.1%. %.
Energy was the only laggard, down 3%.
ON WALLSTREET
Stocks rose on Wednesday – trying to shake off a three-week decline – as rates and oil prices eased, easing investor concerns about continued high inflation.
The Dow Jones Industrials gained 435.98 points, or 1.4%, to end the session at 31,581.28
The S&P 500 regained 71.69 points, or 1.8%. at 3,979.87
The NASDAQ Composite ended its seven-day losing streak, dropping 246.99 points, or 2.1%, to close the session at 11,791.90.
Stocks rallied as Fed Vice Chairman Lael Brainard reaffirmed that the central bank would do what it takes to stifle inflation, while noting the risks of going too far. Many traders decided to focus on this last point as soon as he spoke.
Markets had been hoping the Fed would start granting more modest increases from September, but are now pricing in an 86% chance of a 0.75 percentage point hike.
Shares of Twitter jumped 6.7% on Wednesday morning after a Delaware court denied Elon Musk’s request to delay the trial over his bid to walk away from buying the company for $44 billion. The trial is scheduled to begin on October 17.
Shares of many well-known airlines rose on Wednesday after United Airlines raised its third-quarter sales forecast and reported strong demand, despite the end of the peak summer travel season, which helped boost shares airlines. United rebounded 5% on the day.
Treasury prices fell, pushing yields higher to 3.27% from 3.34% on Tuesday. Treasury prices and yields move in opposite directions.
Oil prices fell $4.76 to US$82.12 a barrel.
The price of gold recovered $16.00 to US$1,728.90 an ounce.

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