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Hamilton Spectator
5 days ago
- Business
- Hamilton Spectator
S&P/TSX composite nearly 100 points higher, U.S. markets also rise
TORONTO - Canada's main stock index was up nearly 100 points to finish trading on Wednesday, helped by gains in the tech sector, while U.S. markets also rose following a broad reversal. The S&P/TSX composite index was up 98.83 points at 27,152.97. In New York, the Dow Jones industrial average was up 231.49 points at 44,254.78. The S&P 500 index was up 19.94 points at 6,263.70 while the Nasdaq composite was up 52.69 points at 20,730.49. 'The smaller overall moves at the close, they really belie what was some intraday volatility, given the press conference with Trump about his potential intention to try and fire the Fed Chairman (Jerome) Powell,' said Tamsin Wilding, principal and portfolio manager of fixed income at Leith Wheeler Investment Counsel Ltd. U.S. President Donald Trump sent the U.S. stock market on a jagged round trip after saying he had 'talked about the concept of firing' the head of the U.S. Federal Reserve. Such a move could help Wall Street get the lower interest rates it loves but would also risk a weakened Fed unable to make the unpopular moves needed to keep inflation under control. Stocks had been rising modestly in the morning, before news reports saying that Trump was likely to fire Fed Chair Jerome Powell quickly sent the S&P 500 down by 0.7 per cent. When later asked directly if he was planning to fire Powell, Trump said, 'I don't rule out anything, but I think it's highly unlikely.' That helped calm the market, and stocks erased their losses, though Trump added that he could still fire Powell. 'What happened here is that we really got a glimpse of what the market reaction function is if Trump did manage to jump through some of those legal loopholes and get Powell ousted,' Wilding said. She added that the reaction was most apparent in the rates market. 'We saw both quite an aggressive curve steepening come through, front-end yields were lower. That's an anticipation of having a more dovish Fed Chair, who would potentially ease rates at a faster rate than what Powell would,' she said. 'On the flip side, we then saw the long-end yields moving higher. So, just reflecting both those inflationary impulses, less confidence in that fiscal trajectory and debt management, as well as confidence concerns with that.' In the bond market, the yield on the 10-year U.S. Treasury fell to 4.45 per cent from 4.50 per cent late Tuesday. It had been as low as 4.44 per cent earlier in the day, but it climbed following the reports that Trump was likely to fire Powell. A new Fed chair friendlier to Trump could mean lower short-term interest rates but also the opposite effect on longer-term yields. That's because a less independent Fed would raise worries that it may also let inflation run higher in the future by being slow to raise interest rates. On the TSX, Cogeco Inc. shares fell 8.8 per cent as the company reported third-quarter earnings results. It also launched a long-awaited wireless service in Canada. Cogeco said its profit amounted to $2.13 per diluted share for the quarter, up from $1.97 per diluted share in the same quarter last year. But analysts took a negative view of the company's results, in which Cogeco also revised its 2025 guidance. Cogeco said it was lowering its revenue projections for the current fiscal year to a 'low single-digit decline,' compared with its previous projection from last October of 'stable' revenue for the year. The Canadian dollar traded for 72.93 cents US compared with 72.94 cents US on Tuesday. The September crude oil contract was down 18 cents US at US$65.19 per barrel. The August gold contract was up US$22.40 at US$3,359.10 an ounce. This report by The Canadian Press was first published July 16, 2025. — With files from The Associated Press. Companies in this story: (TSX:GSPTSE, TSX:CADUSD, TSX: CGO)
Hamilton Spectator
30-04-2025
- Business
- Hamilton Spectator
S&P/TSX composite index down, U.S. markets mixed on weakening economic data
TORONTO - Canada's main stock index closed down Wednesday while U.S. markets were mixed as economic data showed signs of weakness on both sides of the border. Statistics Canada reported that the Canadian economy shrunk 0.2 per cent in February, though economists said harsh winter weather could be more to blame than tariff issues. In the U.S., the economy shrank at a 0.3 per cent annualized pace for the first quarter to come in worse than expectations, leading to steep early-trading losses in U.S. markets over growth fears. 'It's the reality of how all of this uncertainty surrounding tariffs is now hitting the harder economic data,' said Tamsin Wilding, principal and portfolio manager of fixed income at Leith Wheeler Investment Counsel Ltd. While the underlying data showed spending held up reasonably well, it showed consumers were starting to pull back, she said. 'The overall picture of that economy cooling has really led to quite a classic market reaction to that softer data.' The S&P 500 traded down as much as 2.3 per cent and the Dow dropped 780 points in early trading on the news, but both indexes recovered to modest gains by day end. In New York, the Dow Jones industrial average closed up 141.74 points at 40,669.36. The S&P 500 index was up 8.23 points at 5,569.06, while the Nasdaq composite was down 14.98 points at 17,446.34. The continued albeit gradual softening of trade worries, including a report on Wednesday from Chinese media that the U.S. was reaching out on trade talks, was helping ease some tensions, said Wilding. 'That maybe reinforces the de-escalation narrative in terms of global tariffs that has a bit of momentum at the moment.' The S&P/TSX composite index closed down 32.80 points at 24,841.68. The Canadian economic data is tracking lower than what the Bank of Canada had forecast for the first quarter, noted Wilding, building the chances that the central bank will have to react further. For now, the market is betting on two rate cuts from the Bank of Canada this year, while the U.S. Federal Reserve could see four cuts, she said. The fears of wavering economic growth also hit commodities. The June crude oil contract was down US$2.21at US$58.21 per barrel and the June natural gas contract was down six cents US at US$3.33 per mmBTU. The June gold contract was down US$14.50 at US$3,319.10 an ounce and the July copper contract was down 26 cents US at US$4.61 a pound. The Canadian dollar traded for 72.40 cents US compared with 72.22 cents US on Tuesday. This report by The Canadian Press was first published April 30, 2025. Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
