TSX Recovers from Monday Decline

Scotiabank, RBC in Focus

Canada's main stock index rose on Tuesday, tracking prices of crude oil and metals, although Bank of Nova Scotia kept gains in check after reporting a jump in loan loss provisions in the fourth quarter.

The TSX Composite regained 67.61 points to start off the session at 20,288.10.

The Canadian dollar slid 0.26 cents to 73.86 cents U.S.

Suncor Energy said it would retain the Petro-Canada gas station retail business, while noting that capital expenditure for 2023 is expected to increase amid higher crude prices. Suncor shares dropped $1.03, or 2.2%, to $45.17.

TC Energy forecast a rise in 2023 costs as the oil and gas pipeline company continues to grapple with rising labour costs and shortages related to its delayed Coastal GasLink pipeline. TC shares declined $2.08, or 3.2%, to $63.30.

British bank HSBC agreed to sell its business in Canada to Royal Bank of Canada for $10.04 billion, enabling RBC to grab further market share in its home market. RBC dipped 17 cents to $133.04.

Scotiabank, for its part, shed 96 cents, or 1.3%, to $70.50.

On the economic front, Statistics Canada reported real gross domestic product rose 0.7% in the third quarter, the fifth consecutive quarterly increase. The nation’s number crunchers added growth in exports, non-residential structures, and business investment in inventories were moderated by declines in housing investment and household spending.

ON BAYSTREET

The TSX Venture Exchange recovered 4.17 points to 578.68.

Seven of the 12 subgroups began Tuesday in the green, with materials up 1.9%, gold better by 1.8%, and energy ahead 1.7%.

The five laggards were weighed most by utilities, skidding 0.8%, consumer staples dumping 0.6%, and financials, off 0.2%.

ON WALLSTREET

The S&P 500 hovered around the flatline Tuesday as traders struggled to recover from sharp losses suffered in the previous session.

The Dow Jones Industrials lost another 20.57 points, to begin Tuesday’s session at 33,828.89.

The S&P 500 inched higher 0.97 points to 3,964.91.

The NASDAQ eked up 8.54 points to 11,058.04.

Amazon had a price advantage over 12 leading retailers in Profitero’s annual price comparison study and was the price leader in 14 of 15 categories, Fitzgerald pointed out. It tied with Chewy as a price leader in pet supplies, he said.

All U.S. markets declined Monday after protests in mainland China against the country’s zero-COVID policy started over the weekend. This led to worries over the potential for Chinese COVID protocols could once again hamper global supply chains.

Overnight, however, global markets seem to catch a reprieve as a Chinese official told reporters that 65.8% of people “over age 80” had received booster shots. On top of that, the government reported the first decline in COVID infections within mainland China in more than a week. This contributed to a rally in the Hong Kong and Shanghai markets.

On the data front, the latest reading on consumer confidence was set to release at 10 a.m., with more data on topics such as gross domestic product and jobs expected later in the week.

Prices for the 10-year Treasury fell back, raising yields to 3.73% from Monday’s 3.69%. Treasury prices and yields move in opposite directions.

Oil prices progressed $1.81 to $79.05 U.S. a barrel.

Gold prices recovered $10.90 to $1,766.20 U.S. an ounce.