By Ketki Saxena
Investing.com -- The TSX traded in the red at midday, as better-than-expected US PMI data that raised concerns the U.S. Federal Reserve might continue on its aggressive policy tightening path, despite mounting fears of a recession.
Canadian investors will also be awaiting a policy announcement from the Bank of Canada later this week, with markets pricing in a nearly 75% chance of a dialled-down 25 bp move from the Canadian central bank. ed
The commodity heavy Canadian index was also pressured by a reversal in crude prices, which came under pressure from renewed expectations of Fed aggressiveness, despite strong support from steady OPEC+ production, Russian crude price caps, and the Chinese reopening.
Canadian investors should also note that the yield on Canada’s benchmark 2-year debt reached 100 basis points above 10-year bonds on Monday, the largest gap since the early 1990’s - and immediately prior to a deep downturn.
The Biggest Stories on Bay Street
AltaGas (TSX:ALA) reaffirmed its forward guidance, noting expectations for normalized earnings before interest, taxes, depreciation and amortization of $1.5 billion to $1.6 billion next year. AltaGas also announced that it will pay a quarterly dividend of 28 cents per share, up from 26.5 cents per share.
Blackstone (NYSE:BX) Real Estate, a division of private equity firm Blackstone Inc. will buy six industrial properties in the Toronto area. It will pay over $400 million (US$297 million) in cash for the properties, which total 140,000 square meters and are all fully leased. Blackstone is reportedly purchasing the properties from the asset-management arm of Toronto-Dominion Bank (TSX:TD),
Canadian Stocks Moving Markets This Morning
Top Gainers:
Biggest Losers:
In Canadian Economics
Canada's Food Price Report, released by Dalhousie university shows that food costs will continue to accelerate into next year. Grocery bills are forecast to rise up to 7% in 2023. For a family of four, the total annual grocery bill is expected to be $16,288 — $1,065 more than it was this year.