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TSX in the Red; Crude Reverses Gains; GoC Bond Yields Invert Most Since 1991

Stock Markets Dec 05, 2022 11:59
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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: 

  • Tilray (TSX:TLRY)
  • Canopy Growth (TSX:WEED)
  • AltaGas (TSX:ALA)

Biggest Losers: 

  • Cargojet (TSX:CJT)
  • OceanaGold (TSX:OGC)
  • North West (TSX:NWC)

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. 

TSX in the Red; Crude Reverses Gains; GoC Bond Yields Invert Most Since 1991
 

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