A red light on Bay Street in Canada's financial district is shown in Toronto on Wednesday, March 18, 2020. THE CANADIAN PRESS/Nathan Denette
NSDTORONTO - Canada's main stock index was down more than 300 points Wednesday with losses of more than four per cent in energy while U.S. markets also fell substantially.
The information technology index was down almost two per cent, while base metals were down 3.3 per cent and battery metals were up by almost 50 per cent.
The S&P/TSX composite index was down 316.06 points at 19,344.25.
In New York, the Dow Jones industrial average was down 646.89 points at 32,513.94. The S&P 500 index was down 79.54 points at 3,748.57, while the Nasdaq composite was down 263.03 points at 10,353.18.
Wednesday saw 鈥渁 pretty broad-based selloff,鈥 said Ryan Crowther, vice-president and portfolio manager at Franklin Templeton Canada.
Corporate earnings are part of the equation, he said, noting that Disney reported disappointing earnings Tuesday evening.
Meanwhile, Meta鈥檚 shares were up on news of its massive layoff, but the rest of the market is likely less sunny for the same reason, Crowther said.
鈥淚 think the read from an economic perspective (is) only adding further to a bleaker outlook.鈥
Results were mixed on the 好色tv side, said Crowther. For example, Rogers saw its income fall by 24 per cent in the third quarter on outage credits and its proposed acquisition of Shaw.
The 好色tv dollar traded for 74.18 cents US compared with 74.40 cents US on Tuesday.
The December crude oil contract was down US$3.08 at US$85.83 per barreland the December natural gas contract was down 27 cents at US$5.87 per mmBTU.
Energy was weak Wednesday on oil prices, which likely reflects declining optimism that China may curb its zero-COVID policy, said Crowther.
鈥淪o far, senior officials in China are reiterating that the policy remains,鈥 he said. 鈥淪o that鈥檚 weighing on sentiment for oil.鈥
The American Petroleum Institute reporting an increase in inventory likely adds to the effect, said Crowther.
However, TC Energy in Canada is trading higher, noted Crowther, an outlier as the company increased its 2022 guidance.
Investors were likely cautious Wednesday because U.S. inflation data comes out Thursday, said Crowther, and there's a lot hanging on that data.
鈥淓xpectations are that we're gonna get some moderation in the numbers, so a higher than expected inflation number tomorrow, which could further weaken sentiments and reinforce that idea of a higher peak and interest rates,鈥 he said.
鈥淚f we get a higher than expected number, then that's tough for people to digest.鈥
The December gold contract was down US$2.30 cents at US$1,713.70 an ounceand the December copper contract was up two cents at US$3.70 a pound.
This report by 好色tvwas first published Nov. 9, 2022.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
The 好色tv Press. All rights reserved.
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