By Ketki Saxena
Investing.com -- The TSX traded in the red at midday, tracking Wall Street lower as expectations for Fed hawkishness following the last few positive economic data dampened investor sentimentt.
Canadian investors are also watching for the Bank of Canada’s policy announcement tomorrow. Markets are pricing in a chance of a muted 25 bp move, although economists are not discounting the chance of a 50 bp rate hike.
The commodity-heavy Canadian index was also pressured by the continued slide in crude, as Fed fears outweighed bullishness from the Chinese reopening, EU price caps on Russian crude, and OPEC’s maintenance of output.
The Biggest Stories on Bay Street
Cenovus Energy (TSX:CVE) Inc. announced its capital budget for 2023 will total between $4 billion and $4.5 billion in 2023, including about $2.8 billion of sustaining capital. Between $1.2 billion and $1.7 billion are earmarked for optimization and growth, including construction of the West White Rose project, optimization of its oilsands assets and opportunities in its downstream business.
Oilfield services company,Shawcor Ltd. has acquired Toronto based Kanata Electronic Services Ltd., a privately owned manufacturer and supplier of wire and cable parts for the nuclear and aerospace industries. Financial terms of the deal remain currently undisclosed. The company will be integrated into Shawcor’s ShawFlex wire and cable business.
Lumber company Canfor (TSX:CFP) Corp. is temporarily paring back its Canadian production due to current “weak” macroeconomic conditions. The company will introduce curtailments at all of its solid wood facilities in B.C. and Alberta, reducing production by about 150 million board feet in December and January.
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In Canadian Economics
Equifax (NYSE:EFX) Canada reports that consumer debt soared to $2.36 trillion in the third quarter, or a 7.3% increase from last year. The increase was driven by a greater number of borrowers, even as mortgage volumes declined. Overall non-mortgage debt came in at $599.9 billion , 5.3% higher year over year.
Statistics Canada reports that the country’s merchandise trade surplus widened by more than expected in October. The surplus rose to $1.2 billion, Economists were anticipating exports to exceed imports by $900 million in October. Total exports rose 1.5%, while total imports increased 0.6% on the month.