Canada's Stock Market Down More Than 1,000 Pts In Last Four Straight Sessions

Last Updated: Monday, September 26, 2022 4:04 PM | MT Newswires

Canada's main stock market lost early gains that saw it rise to above the 18,570 level by 10am ET, with just not enough bargain hunters around to launch a sustained recovery after recent heavy losses. Instead, more investors quickly moved back in to push the Toronto Stock Exchange all the way down to the 18.270 level by near mid-afternoon amid continued concerns around high inflation and a real possibility of another global recession -- factors that weighed on commodity prices, and hence on the resources heavy index here. While the TSX did recover some ground over the run in to the close, it did still close down near 150 pts, taking four days of losses to more than 1,000 points.

And what market outlook we are seeing isn't very re-assuring either in terms of there being an end to the misery in sight for investors, in the United States and by extension in Canada. For its part, Wells Fargo Investment Institute (WFII) on Monday published this week's Investment Strategy Report. In it, WFII said after growing by 8% in the second quarter of 2022, S&P 500 Index earnings are expected to rise by less than 5% in the third quarter of 2022. The Energy sector is expected to lead growth for the quarter. However, excluding the Energy sector, overall S&P 500 Index earnings likely will be flat.

Of commodities today, West Texas Intermediate crude oil fell to the lowest in nearly nine months on Monday as recession worries dominated trading while the US dollar continued to strengthen. WTI crude for November delivery closed down $2.03 to US$76.71 per barrel, Marketwatch reported, the lowest since early January. November Brent crude, the global benchmark, was last seen down $1.38 to US$84.77, while Western Canada Select was down $2.07 to US$54.72 per barrel.

Also, gold fell to the lowest in more than two years as the US dollar continued to be the safe haven of choice for investors amid recession worries sparked by rising interest rates, while bond yields rise to the highest in more than a decade. Gold for December delivery closed down U22.20 to US$1,633.40 per ounce, the lowest since March, 2020.

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