By Ketki Saxena
Investing.com -- At 10:00 a.m in Toronto, the S&P/TSX Composite Index was at 18,244.44 points, down 1.99% in the day’s trading as Canadian equities continued to react to the double whammy of an all in, 100 basis point hike from the Canadian central bank, and red-hot inflation data (9.1%) in the U.S., raising bets for a 75 or even 100 basis point hike from the Federal Reserve later this month.
Here’s what’s to watch today in Canadian economics, commodities, and the corporate side on Bay Street.
Canadian Economics
Canadian investors will be awaiting further guidance from a speech by Bank of Canada Governor Tiff Macklem at a webinar hosted by the Canadian Federation of Independent Business later today. While the event is private, investors will be watching for the recorded conversation to be published this afternoon.
Commodities
The commodity-heavy Canadian index was also pressured by the continuing slide in crude that has WTI hovering near $90/barrell and Brent close to $95.
Crude prices have slipped over 15$/barrell in recent weeks on growing worries of recession-driven demand destruction, recently exacerbated by growing expectations for even more aggressive Fed hikes, and the U.S. dollar’s 20-year high, which makes crude prices more expensive for holders of other currencies.
Broad-based losses in metals also weighed on the Canadian index, also due to worries of declining industrial output as the global economy slows. Gold meanwhile also declined as Treasury yields and the dollar rose. Lower demand for copper from top consumer China due to COVID-19 lockdowns also weighed on the economic bellwether. Canadian mining behemoth Barrick Gold (NYSE:GOLD) Corp said also today forecasted lower realized copper prices in the second quarter, driven by fears of a rate-hike driven recession.
The world’s second-biggest gold miner also forecasted the average market price for gold in the quarter was $1,871 per ounce, compared to $1,877 per ounce in the previous quarter.
Corporate
On Bay Street after the close yesterday, Cogeco (TSX:CGO) Communications Inc. reported a 5% increase in net profit to $100.3-million, while earnings per share rose to $2.16 per diluted share, up from $2.01 per share in the previous quarter. Revenue for the three months ended May 31 was $728.1-million, up 16.6% from the previous quarter.
Barrick Gold Corp today also reported a 5.4% rise in second-quarter gold output, driven by stronger performance at its Carlin and Turquoise Ridge mines in Nevada.