Stocks Hoping for End to 5-Day Slump

Athabasca, Filo in Focus

Gains in tech and materials shares on Tuesday helped Canada's main stock recover from a five-day selloff that was triggered by mounting worries about a global economic downturn.

The TSX Composite regained 215.85 points, or 1.2%, to break for lunch Tuesday at 18,542.89.

The Canadian dollar faded 0.02 cents to 72.91 cents U.S.

Colliers International Group fell $1.41, the most on the TSX, to $129.90, after Scotiabank assumed the coverage on the stock with sector perform rating versus sector outperform.

In energy stocks, Athabasca Oil gained 14 cents, or 7.5%, to $2.02, while Precision Drilling moved ahead $4.34, or 6%, to $70.18.

In materials, Filo Mining took on 93 cents, or 6.5%, to $15.23, and Lundin Mining advanced 30 cents, or 4.8%, to $6.58.

The TSX has lost 5.2% so far this month and is headed for a second straight month of decline. This, as worries about the economic impact of central bank tightening overshadowed domestic data showing an easing of inflation pressures.

Bank of Canada Governor Tiff Macklem said on Monday that the central bank must hike interest rates to slow spending and give the economy time to catch up.

The central bank has lifted rates by 300 basis points in just six months, with traders pricing in another 50-bps hike next month.


ON BAYSTREET

The TSX Venture Exchange recovered 14.04 points, or 2.5%, to 581.43.

All but one of the 12 TSX subgroups were positive, with energy stocks rising 3.4%, materials surging 2.3%, and health-care haler by 2.1%.

Only utilities missed the party, backtracking 0.3%.

ON WALLSTREET

Stocks rose Tuesday, as the Dow Jones Industrial Average and S&P 500 bounced back slightly from their lowest closing levels in nearly two years.

The 30-stock index came off its highs of the morning, but remained positive 68.37 points to 29,329.18.

The S&P 500 progressed 14.78 points to 3,669.82

The NASDAQ Composite stayed afloat 87.78 points to 10,890.78.

The move comes after five straight days of losses for stocks, with the S&P 500 closing at its lowest level since 2020.

The Dow dropped more than 300 points on Monday, putting it in a bear market after falling more than 20% below its record high. The 30-stock average also posted its lowest closing level since late 2020.

The British pound rebounded slightly after plunging to a record low against the dollar earlier in the week. Sterling traded more than 1% higher at $1.087 per dollar after hitting an all-time low of $1.0382.

Consumer discretionary rose 1.6%, boosted by cruise line stocks that spiked after news that Canada would drop COVID-19 travel restrictions. Royal Caribbean Group was up 6.1%, and Norwegian Cruise Line Holdings climbed 4.9%

Information technology stocks advanced 1.3%, helped by solar stock Enphase Energy, better by 5.3%, and chip company Nvidia, which jumped 3.3%.

Treasury prices lost ground, pushing up yields to 3.96% from Monday’s 3.90%. Treasury prices and yields move in opposite direction.

Oil prices regained $2.25 to $78.96 U.S. a barrel.

Gold prices jumped $6.30 to $1,639.70 U.S. an ounce.