Salem Radio Network News Monday, October 3, 2022

Business

TSX set to extend gains as U.S. inflation data offers relief

By Johann M. Cherian

(Reuters) – Canada’s main stock index looked set to extend gains on Thursday, boosted by softer-than-expected U.S. inflation data and strong quarterly results from Canada Goose on resilient luxury demand.

September futures on the S&P/TSX index were up 0.3% at 7:35 a.m. ET. The Toronto stock index ended up 307.64 points, or 1.6%, at 19,885.94, its highest closing level in two months.

Canadian markets followed global peers higher after U.S. consumer prices remained unchanged in July compared with June, raising hopes that the Federal Reserve would cut back on super-sized interest rate increases. [MKTS/GLOB]

Canada is expected to report its inflation figures next week. Markets now see a half-percentage-point interest rate increase by the Bank of Canada next month after it hiked in July by a full percentage point.

Early on Thursday, luxury apparel maker Canada Goose Holdings Inc, beat Wall Street estimates for quarterly revenue as affluent consumers remained undeterred by decades-high inflation.

Canada’s largest life insurer Manulife Financial Corp slightly beat estimates for second-quarter core profit but saw earnings drop from a year earlier.

Suncor Energy is considering a spinoff of its Petro-Canada gas station business, which could reap more than $8 billion.

However, Canadian antitrust rules and the need for the unit’s steady profits could deter that move according to analysts and shareholders.

U.S. jobless claims data is expected at 8:30 a.m. ET, with Dow e-minis up 153 points, or 0.46%, at 7:37 a.m. ET. S&P 500 e-minis were up 16 points, or 0.38%, and Nasdaq 100 e-minis were up 41 points, or 0.31%. [.N]

(Reporting by Johann M Cherian in Bengaluru; Editing by Devika Syamnath)

Previous
Next

Editorial Cartoons

View More »

Steve Breen
Sun, Oct 2, 2022

X CLOSE