TSX Ekes out a Gain; Big 6 Banks Raise Prime Rate; Rents Across Canada Soar

© Reuters.

By Ketki Saxena 

Invesitng.com – The Canadian index had managed to eke out a gain at midday after trading in the red earlier in the day. The TSX tracked Wall Street indices higher in a day of volatile trading following robust US GDP data that had investors adjusting rate hike bets and strong results from Tesla (NASDAQ:TSLA) that raised hopes for further tech earnings next week. 

However, all eyes remain on the US Federal Reserve at its meeting next week, where investors are hoping for the world’s most powerful central bank to slow its pace of rate hikes.

The commodity heavy Canadian index was pressured by miners as gold prices fell, but gained a boost from crude prices on continued hopes for China’s reopening and a less hawkish Fed.

The Biggest Stories on Bay Street 

Following the Bank of Canada’s 25 bps rate hike to 4.50% yesterday, all of Canada’s big six banks quickly raised their own prime rates by 25 bps. All of Canada’s major lenders are now offering prime rates at 6.70% the highest level since early 2001.

Canfor (TSX:CFP) Corp is further cutting its board capacity and restructuring its British Columbia operations. After previously curtailing 150 million board feet of production, Canfor is now permanently closing its Chetwynd sawmill and temporary closing its Houston sawmill. The move will remove 750 million board feet from production. 

Imperial Oil (TSX:IMO) Ltd. announced it will go ahead with its previously announced $720-million renewable diesel facility at its Strathcona refinery near Edmonton. The prospect is expected to produce 20,000 barrels per day of renewable diesel once it is complete in 2025. 

Canadian Stocks Moving Markets Today 

Top Gainers: 

• Interfor (TSX:IFP) Corp 
• Canfor Corp 
• West Fraser Timber 

Top Losers: 

• Mag Silver 
• NovaGold
• Ballard (TSX:BLDP)

In Canadian Economics 

A report from CMHC shows that rents across Canada rose at a record pace, with the annual rent for a two-bedroom apartment growing 5.6% between 2021 and 2022. Rents rose significantly more for two-bedroom units that turned over to new tenants, at 18.3% compared with 2.9% for apartments which had existing tenants renew leases. 

Statistics Canada reports that job vacancies fell 2.4% in November, o their lowest level since August 2021.  The job vacancy rate — which measures the number of vacant positions as a proportion of total labour demand — was 4.8% in November, the lowest level since June 2021.