TSX Down Six Days In A Row; Stock Wise, TC Energy in Focus

Last Updated: Friday, December 9, 2022 4:26 PM | MT Newswires

Canada's main stock market, the Toronto Stock Exchange, lost about 80 points over the final hour of Friday's session to close down 22 points and under the 19,950 level, making it six losing days in a row after it lost more than 530 points in the prior five successive sessions.

The TSX had stood around the 20,500 level at 3pm ET last Friday, December 2, 2002, and it was around the same time exactly one week later, that it turned negative today.

The losses have likely been mounting as North America investors look for more clarity around an endpoint to rate hikes after the Bank of Canada appeared to leave the door ajar for both a pause and/or another increase in its update of this week, while the focus will now shift toward the US Federal Reserve ahead of its rates decision next Wednesday.

For its part, Oxford Economics noted that recent weaker-than-expected inflation data had revived interest in growth stocks, but it thinks they will continue to underperform over the next few quarters. "We believe that inflation will remain relatively sticky in the US and do not expect any rate cuts in 2023. Growth stocks have typically lagged versus value in this macro environment."

"Growth valuations remain elevated versus historic norms, and we believe that the growth universe is relatively vulnerable to the coming downturn due to its sector tilts. We expect growth stocks to derate further as their fundamentals deteriorate," it added.

Among commodities, gold closed higher Friday, staying above the US$1,800 mark for a second day as the dollar was mostly unchanged though bond yields rose. Gold for February delivery closed up $9.20 to settle at US$1,810.70 per ounce.

WTI crude edged down to a fresh 2022 low as supply concerns following a major spill from TC Energy's (TRP.TO, TRP) Keystone Pipeline in Nebraska that shut a line carrying nearly a fifth of Canada's oil exports to the United States, while tankers carrying Russian crude are backed up in the Black Sea, were more than offset by concerns that rising interest rates are pushing major economies into demand-destroying recessions. WTI crude for January delivery closed down $0.44 to US$71.02 per barrel, the lowest Since Dec.20. February Brent crude, the global benchmark, was last seen down $0.72 to US$75.43, while Western Canada Select was down $0.63 to US$42.36 per barrel.

TC Energy could soon partially restart a portion of the Keystone pipeline upstream from the line that spilled 14.000 barrels of oil into a creek south of Steele City, Nebraska, on Thursday, Bloomberg News reported.

Looking at sectors, Financials, Info Tech and Utilities all posted modest gains, led by Base Metals Index, which was up about 1.2%. Meanwhile, Healthcare and Energy were among the biggest losers down 0.9% and 0.7%, respectively.

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