Equities in Canada’s largest centre were muted at the open on Monday, as gains in technology and energy stocks were capped by losses in materials stocks as focus shifts to the Bank of Canada's interest rate hike decision later in the week.
The TSX regained 161.77 points to open a new week at 20,503.21.
The Canadian dollar sank 0.19 cents at 74.60 cents U.S.
In individual company news, the Wall Street Journal reported Ritchie Bros Auctioneers will increase cash payout for IAA Inc. shareholders to $12.80 per share from $10 as part of the deal to buy the U.S.-based company. Ritchie shares
On the economic calendar, Statistics Canada’s new housing price index for December was unchanged in December following three months of declines. New house prices were unchanged in 19 of the 27 census metropolitan areas surveyed, down in six and up in the remaining two.
ON BAYSTREET
The TSX Venture Exchange forged ahead 1.68 points to 623.81.
The 12 subgroups were evenly divided between gainers and losers, with health-care soaring 2%, information technology, up 1.8%, and industrials eking ahead 0.3%.
Gold faded 1%, while materials and consumer staples each lot 0.5%.
ON WALLSTREET
Stocks rose Monday as investors contemplated a potential slowdown in rate hikes from the Federal Reserve and braced for a busy week of earnings.
The Dow Jones Industrials picked up from where they left off Friday, adding 61.06 points Monday to 33,436.55.
The S&P 500 eked up 18.6 points to 3,991.61.
The NASDAQ Composite jumped 100.77 points to 11,241.21.
Investors weighed the possibility that the Fed is preparing to slow the pace of its inflation-fighting rate hikes. Economic data released last week showed a decline in wholesale prices and retail sales, along with commentary from central bank officials, seemed to signal a slowdown.
Remarks from Fed Governor Christopher Waller Friday seeming to favor a quarter percentage point rate increase at the next meeting lifted investors’ hopes for a downshift. A Wall Street Journal report Sunday raised the possibility of a spring pause to rate increases — a sign that the Fed could be nearing the end of its rate hiking campaign.
Markets have priced in a 99.7% chance of a 25-basis point hike, according to CME Group data, which would bring the interest rate to a targeted range of 4.5%-4.75%.
Earnings reports could keep the market on edge, with about 40% of the Dow scheduled to release their latest financial results and offer more insight into how companies are weathering inflation and interest rates. Some big names on deck include Microsoft, IBM, Tesla, Visa and Mastercard.
Prices for the 10-year Treasury hesitated a bit, boosting yields to 3.52% from Friday’s 3.50%. Treasury prices and yields move in opposite directions.
Oil prices gained 80 cents to $82.44 U.S. a barrel.
Gold prices doffed $7.40 to $1,920.80 U.S. an ounce.
