TSX Modestly Higher; Keystone Pipeline Shuts Down; Canadian Banks Hike Prime Rate

© Reuters.

By Ketki Saxena

Investing.com -- The Canadian index traded modestly higher at midday, tracking Wall Street higher as US jobless claims were in line with expectations. The data showed indicators of a weakening labour market, somewhat tempering fears of Fed aggressiveness after resolutely positive economic data in previous data.

The commodity heavy Canadian index was also supported by a rally in oil prices, following optimism of a boost in Chinese demand from China, and signs G7 price cap is delaying exports of Russian crude.

Crude also received a boost from news of a shutdown of TC Energy’s giant behemoth Keystone pipeline following a leak. The 622,000 barrel-per-day Keystone line is the primary artery shipping heavy Canadian crude from Alberta to refiners in the U.S. Midwest and the Gulf Coast.

The Biggest Stories on Bay Street

Following the Bank of Canada’s 50 bps increase to its overnight rate, taking the rate to 4.25%, Canada’s big six banks have announced an increase to prime rates. RBC (TSX:RY), Bank of Montreal (TSX:BMO), Canadian Imperial Bank of Commerce, Bank of Nova Scotia (TSX:BNS) and Toronto Dominion Bank (TSX:TD) will raise their prime rates by half a percentage point to 6.45%, from 5.95%, effective today.

Also related to Canada’s big banks, the country’s banking regulator has raised Canada’s banking regulator has raised the Domestic Stability Buffer, or DSB, a capital buffer that it requires the country’s largest banks to hold as a buffer against economic shocks. The DSB will be increased to 3% as of Feb. 1, 2023, up from the current level of 2.5%.

Canadian Stocks Moving Markets This Morning

Top Gainers:

• Parkland (TSX:PKI) Fuel
• Mullen Group (TSX:MTL)
• Capstone Mining (TSX:CS)

Biggest Losers

• Tamarack Valley (TSX:TVE)
• NFI Group (TSX:NFI)
• Canopy Growth (TSX:WEED)

In Canadian Economics

Deputy Governor Sharon Kozicki of the Bank of Canada will speak before the Institut de développement urbain du Québec. Webcasts of the event will be available.