Canada’s top stock index rose to its highest level in nearly two weeks on Monday, helped by earnings from resource-linked stocks and a good mood from global equities, although Bombardier Inc. fell to its highest level. lowest level in 15 months. US stocks ended modestly lower, with traders reluctant to make moves ahead of the second quarter earnings season.
The Toronto Stock Exchange’s S & P / TSX composite index ended 195.41 points, or 1%, at 19,258.32, its highest level since June 15.
Although Wall Street stocks closed lower, global markets generally held up on Friday’s recovery, as the recent fall in commodity prices eased concerns about prolonged inflation.
Investors have worried that aggressive rises in central bank interest rates to cool inflation could derail economic growth.
“Today’s recovery in risk appetite is simply that rates may not rise as far as previously thought,” said Stuart Cole, chief macroeconomist at Equiti Capital.
“There is also talk of a rebalancing by large institutional investors as we reach the end of the first half of the year, returning to stocks due to this brighter outlook and a reduction in concern about the recession “.
Canada’s commodity-linked market is on track to fall 12% in the second quarter, which would be its biggest drop since the first quarter of 2020.
The energy sector rebounded 4.7% on Monday with the rise in oil prices. US crude oil futures rose 1.8% to $ 109.57 a barrel as the Group of Seven vowed to step up pressure on Russian President Vladimir Putin’s war chest while lowering prices. of energy.
The materials group, which includes precious and base metal mines and fertilizer companies, added 2%, while heavily weighted finances ended up 0.7% higher.
Shares of the commercial aircraft company Bombardier fell 17.3% to its lowest level since March 2021.
A former Indonesian head of Garuda convicted of grafting is being investigated for alleged irregularities in the acquisition of Bombardier and ATR aircraft, Indonesia’s attorney general said.
US equities fell amid few catalysts to influence investor sentiment as they approach the middle of a year in which equity markets have been hit by rising concerns by inflation and the tightening of Fed policy.
Major U.S. stock indices lost ground after fluctuating early in the session, with the weakness of interest-sensitive megacaps such as Amazon.com, Microsoft Corp. and Alphabet Inc.
“The reason for the lack of guidance this week and next week is that investors are looking at what will happen in the second quarter reporting period,” said Sam Stovall, CFRA Research’s chief investment strategist at New York.
The three indices are poised to hit two consecutive quarterly declines for the first time since 2015. They also look set to post losses for June, which would mark three consecutive months of declines for the Nasdaq, with high technology, its streak of longest losses since 2015.
The S&P was on track to report on Friday its fifth worst price drop since 1962, Stovall said.
“Every time the SPX rose more than 20% in one year, it fell an average of 11% from the new year. And every year the decline began in the first half they broke up again even before the end of the year. “
“There’s no guarantee it’s going to happen this year, but the market could surprise us on the upside,” Stovall said.
Rising oil prices helped put energy stocks at the forefront of the U.S. market, with small-caps, semiconductors and economically sensitive transportation also outperforming the broader market.
Economic data was surprisingly on the rise, with new durable goods orders and pending home sales exceeding expectations and giving more credibility to U.S. Federal Reserve Chairman Jerome Powell’s claim that economy is robust enough to withstand the central bank’s attempts to curb high inflation for decades without entering a recession.
The Dow Jones Industrial Average fell 62.42 points, or 0.2%, to 31,438.26, the S&P 500 lost 11.63 points, or 0.3%, to 3,900.11 and the Nasdaq Composite fell 93.05 points, or 0.517.5%, to 0.517.5%.
Among the 11 major sectors of the S&P 500, eight ended the session in negative territory, and the discretionary consumer suffered the largest percentage loss. Energy values were the clear winners, with an increase of 2.8% on the day.
With several weeks to go before second-quarter reports begin, 130 S&P 500 companies have previously announced preliminary results. Of these, 45 have been positive and 77 have been negative, resulting in a negative / positive ratio of 1.7 stronger than the first quarter but weaker than a year ago, according to data from Refinitiv.
Shares of stock trading platform Robinhood Markets rose 14% after media reports said Goldman Sachs changed shares to “neutral” from “sell”.
But the double-declining broker of shares of cryptocurrency exchange Coinbase Global Inc to “sell” from “buy,” caused its shares to fall 10.8%.
The advanced questions outnumbered those that went down on the NYSE in a ratio of 1.17 to 1; on the Nasdaq, a ratio of 1.02 to 1 favored declines. The S&P 500 recorded a new 52-week high and 29 new lows; the Nasdaq Composite recorded 24 new highs and 84 new lows. The stock market volume of the United States was 10,910 million shares, compared to the average of 12,950 million in the last 20 trading days.
Reuters, Globe staff
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