By Ketki Saxena
Investing.com -- The TSX tracked Wall Street deep into the red at midday, as worries of a global recession driven by hawkish central banks remained the dominant theme into the start of a new week. Following rate-hikes and hawkish rhetoric from the US Federal Reserve, European Central Bank, and the Bank of England, the sell-off in equities continued as investors prepared for further tightening ahead.
The commodity-heavy Canadian index gained some support from crude prices, as data from China showed an uptick in demand metrics after the paring back of stringent lockdowns, even though Covid-19 cases continued to soar.
Crude was also supported by an announcement that the U.S. government is planning to refill its strategic reserves, initially buying 3 million barrels of oil, and that the restart of the Keystone pipeline is likely to be delayed by incoming cold weather.
The Biggest Stories on Bay Street
Restaurat Franchisor Foodtastic Inc. will acquire the health focused fast food restaurant chain Freshii Inc. for $74.4 million or $2.30 per share in cash. Foodtastic is also the franchisor behind brands like Second Cup, Pita Pit and Milestones.
Canadian stocks Moving Markets at Midday
Top Gainers:
- Dye & Durham
- Dundee Precious Metals
- Brookfield Asset Management
Top Losers:
- Mag Silver
- Cronos
- Tilray (TSX:TLRY)
In Canadian Economics
The Canadian government plans to seize US$26 million in sanctioned assets from infamous Russian oligarch Roman Abramovich. The proceeds from the forfeiture used to help reconstruct Ukraine and compensate victims of the war.
Bank of Canada Governor Tiff Macklem admitted to errors on the BoC’s part in its monetary policy last year. In an end of year interview to the Globe and Mail, Mr. Macklem said “If we’d known that there wasn’t going to be another wave, and that the economy would reopen rapidly, and that households would come very rapidly back into the market… yes, I think if we could have foreseen that, we would have started to raise interest rates earlier.”
Canadian home prices fell in November, the Teranet–National Bank National Composite House Price data showed on Monday. The index, which tracks repeat sales of single-family homes in major Canadian markets, dropped 1.3 per cent on the month. From its peak in May, the index has now fallen 9 per cent.
Canadian job vacancies fell 3.3% in Q3, compared to Q2, Statistics Canada reported today. The job vacancy rate — which corresponds to the number of vacant positions as a proportion of total labour demand fell to 5.4%, down from 5.7% in Q2.