The S&P TSX composite index screen at the TMX Market Centre in downtown Toronto is photographed on Friday, November 11, 2022. THE CANADIAN PRESS/ Tijana Martin
In Toronto, Canada's primary stock index experienced a gain of over 100 points on Thursday, driven by increases in energy stocks, while markets in the United States also saw upward movement.
Across the border, February concluded with fresh all-time highs for U.S. markets, with both the S&P 500 and the Nasdaq composite reaching new peaks.
In New York, the Dow Jones industrial average rose by 47.37 points to 38,996.39. The S&P 500 index climbed by 26.51 points to 5,096.27, and the Nasdaq composite surged by 144.18 points to 16,091.92.
Meanwhile, the S&P/TSX composite index in Canada closed with a gain of 119.84 points at 21,363.61.
According to Ian Chong, portfolio manager at First Avenue Investment Counsel Inc., the market's positive response was influenced by the latest economic indicators from the U.S. The core Personal Consumption Expenditures (PCE) report, a key measure of inflation for the U.S. Federal Reserve, met expectations, alleviating concerns of overheating after recent consumer inflation data.
Chong noted that while markets had scaled back expectations for rate cuts in line with the Fed's projections, the central bank remains flexible based on economic data trends.
Despite optimism in the markets, Chong pointed out that Canada's recent GDP report revealed modest growth, indicating no recession in the latter half of 2023 but still showing sluggish expansion in the fourth quarter.
Earnings reports from TD and CIBC rounded off the week's major bank announcements in Canada, with each institution setting aside more funds for potential loan losses.
In currency markets, the Canadian dollar traded at 73.69 cents US, while crude oil prices dipped slightly to US$78.26 per barrel for the April contract. Natural gas prices for the April contract were down at US$1.86 per mmBTU, while gold prices rose to US$2,054.70 an ounce for the April contract. Copper prices were up slightly, with the May contract reaching US$3.85 per pound.
