Ketki Saxena
Investing.com -- Last week, the S&P/TSX Composite closed the week 0.25%, or 52.79 points higher, despite a broad-based market selloff and spiking volatility due to the Russian Invasion of Ukraine. South of the border, the Dow Jones Industrial Average fell -0.48%, or -20.63 points, while the S&P 500 had a relatively stronger rebound, closing the week 0.09% higher at 4,378.47 points. European equities tanked heavily.
Canadian equity markets held up better than U.S. counterparts, largely due to the heavy weighting of commodities on the TSX. Commodities, as well as traditional safe havens such as bonds and the U.S. dollar strengthened, driven by inflation and expectations of interest-rate hikes, in addition to geopolitical tensions.
The yield on 5 and 10-year Government of Canada bonds, and 5 year bonds, were up 0.02 basis points, at 1.74% and 1.90% respectively. The CAD/USD pair remained little changed at $0.78 USD to a loonie, with strengths in safe-haven USD balanced by the surge in Crude Oil WTI Futures, a key driver of the loonie, past $100/barrel. YTD, CAD has declined 0.8% against the greenback.
What to watch on the TSX this week
While investor sentiment will continue to be dominated by the Russia- Ukraine conflict again this week, the direct impact on the U.S. and Canadian economies and corporate earnings is likely to be limited. The big story in Canadian economics will be the BOC’s interest rate decision, expected on Wednesday, March 2nd.
Significantly relaxed COVID-19 restrictions will be another major driver for the Canadian economy. As of today, Canada will no longer require PCR testing for pre-entry into the country. Ontario and Alberta will be removing all capacity limits later in the week.
Major corporate earnings this week include Bank of Montreal (TSX:BMO), Bank of Nova Scotia (TSX:BNS), and Toronto Dominion Bank (TSX:TD). It’s also a big week for Energy investors, with Canadian Natural Resources Ltd (TSX:CNQ), Crescent Point Energy Corp . (TSX:CPG) and MEG Energy Corp (TSX:MEG) set to report earnings.
This week’s Canadian Earnings and Economic Data Calendar
Monday, February 28
Canadian Economics: Canadian current account balance; industrial product and raw materials price indices; Alberta Finance Minister Travis Toews addresses Calgary Chamber of Commerce
Notable earnings: no notable Canadian earnings
Tuesday, March 1
Canadian Economics: Canadian GDP (Q4); Parliamentary Budget Office releases report “Economic and Fiscal Outlook – March 2022”
Notable earnings: Bank of Montreal (TSX:BMO), Bank of Nova Scotia (TSX:BNS), First National Financial Corp (TSX:FN), Canfor (TSX:CFP), Aecon Group Inc . (TSX:ARE), Kinaxis Inc (TSX:KXS)
U.S. Data: ISM U.S. manufacturing index; U.S. President Joe Biden delivers State of the Union address
Wednesday, March 2
Canadian Economics: Bank of Canada releases interest rate decision; Calgary Chamber of Commerce conference on energy sector transformation
Notable earnings: Laurentian Bank Of Canada (TSX:LB), George Weston Limited (TSX:WN), Autocanada Inc (TSX:ACQ)
U.S Data: U.S. Federal Reserve Chair Jerome Powell addresses U.S. House Financial Services Committee hearing "Monetary Policy and the State of the Economy; U.S. Federal Reserve releases Beige Book
International: OPEC holds ministerial meeting
Thursday, March 3
Canadian Economics: BoC Governor Tiff Macklem delivers speech ("Economic Progress Report") to CFA Society of Toronto
Notable earnings: Toronto Dominion Bank (TSX:TD), Canadian Natural Resources Ltd (TSX:CNQ), Crescent Point Energy Corp. (TSX:CPG), MEG Energy Corp (TSX:MEG), SNC-Lavalin Group Inc . (TSX:SNC), Algonquin Power & Utilities Corp (TSX:AQN)
U.S. data: U.S. initial jobless claims and ISM services index; U.S. Federal Reserve Chair Jerome Powell addresses U.S. Senate Banking Committee hearing
Friday, March 4
Canadian Economics: Canadian building permits
Notable earnings: AltaGas (TSX:ALA)
U.S. Data: U.S. non-farm payrolls