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TSX Closes in the Red as US Debt Cieling Worries, Fed Fears Weigh

Published 2023-05-02, 04:04 p/m
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By Ketki Saxena

Investing.com – The TSX tracked Wall Street lower today to end the day in the red, as expectations of a 25bp hike from the Fed on Wednesday, weak US labour market data, and the imminent possibility of the US government running out of money within the month, weighed heavily on risk sentiment. 

The commodity heavy Canadian index was also pressured by a slide in crude prices on worries of an economic slowdown driven by the same factors that pressured US equities - as well as an upcoming rate hike from the European Central Bank.

The Biggest Stories on Bay Street

HSBC Holdings (LON:HSBA) plc says the $13.5-billion sale of its Canadian division to Royal Bank of Canada (TSX:RY) will now close in the first quarter of 2024 instead of later this year, as has been originally projected. The move comes in order to ensure a smooth transition, particularly as other bank deals including TD’s takeover of First Horizon, are being delayed by the hit to regional banks and increased regulatory scrutiny. 

Restaurant Brands International (TSX:QSR) Inc. reported a first-quarter profit of US$277 million, up from US$270 million a year earlier. On an adjusted basis, Restaurant Brands said it earned 75 cents per diluted share in its latest quarter, up from an adjusted profit of 64 cents per diluted share this time last year. Revenue for the quarter ended March 31 was US$1.59 billion, up from US$1.45 billion in the first three months of 2022. The growth was driven largely by Tim Hortons as the coffee chain aims at optimizing its menu, restaurant operations, and pricing. , 

BlackBerry (TSX:BB) Ltd. is reviewing strategic optionsf or its portfolio, which the company says  "include, but are not limited to, the possible separation of one or more of BlackBerry’s businesses”. Blackberry (TSX:BB) also reiterated that it will be selling its patents portfolio for a cash and royalties deal was valued at up to US$900 million. The portfolio includes roughly 32,000 patents and applications related to mobile devices, messaging and wireless networking.

Canadian Stocks Moving Markets Today 

Top Gainers: 

  • BlackBerry Ltd (TSX:BB)
  • OceanaGold (TSX:OGC)
  • Osisko Mining (TSX:OSK)

Top Losers:

  • Colliers International (TSX:CIGI)
  • International Petroleum Corp (TSX:IPCO)
  • Athabasca Oil (TSX:ATH)

In Canadian Economics 

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