By Ketki Saxena
Investing.com -- The S&P/TSX Composite index rallied today, in what turned out to be an unexpectedly shortened trading day, as trading on the TSX, TSXV and Alpha Exchage was halted due to a technical difficulty for approximately an hour.
In spite of the glitch, the Canadian index tracked Wall Street higher as markets await tomorrow’s monetary policy announcement from the Fed. Investors will be watching for toned down rhetoric that may signal smaller rate hikes in December and onwards. Bets for a 75 bp move tomorrow are now largely priced in.
The commodity heavy Canadian index was also supported by gains in crude, following as yet unconfirmed reports that Beijin’s new Politburo will look to relax the "Zero-COVID". The Chinese authorities strict approach to Covid lockdowns has hampered economic activity and reduced fuel demand in the world’s largest importer of crude.
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The latest twist in the Rogers-Shaw-Quebecor-Freedom Mobile deal, currently opposed by Competition Commissioner Matthew Boswell, who says the deal will materially reduce competition in Canada’s wireless market. Today, Chief Justice Paul Crampton has ordered legal counsel for the three parties to appear at a case management conference to further discuss compromises to satisfy regulatory concerns.
Imperial Oil (TSX:IMO) detailed the $1.5 billion of its own stock (~3.4% of shares outstanding). The company will conduct the buyback via a modified Dutch auction, allowing shareholders to offer up their stock within a certain range: $72.50-$87 per share. The buyback had been previously announced at the company’s earnings ca;; last week.
Thomson Reuters (TSX:TRI) reported a profit of US$228 compared with a loss of US$240 million in the same quarter last year.Profit amounted to 47 cents per diluted share for the quarter ended Sept. 30 compared with a loss of 49 cents per diluted share a year earlier.Revenue was at US$1.57 billion, up from US$1.53 billion this time last year.
Molson-Coors reported net income of US$216.4 million or 99 cents per share for the third quarter, compared with a profit of US$453.0 million or US$2.08 per diluted share in the same period last year. Net sales for the quarter totalled US$2.94 billion, up from US$2.82 billion this time last year.
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In Canadian Economics
A survey by Equifax (NYSE:EFX) Canada showed average credt card balances held by Canadians was at a record high of $2,121 at the end of September. Average non-mortgage debt was at $21,188. The survey also revealsed that over half of Canadians have anxiety about their levels of debt, and are worried about paying regular bills like rent, utilities or insurance.
The S&P Global (NYSE:SPGI) Canada Manufacturing PMI fell to 48.8 in October of 2022, down from 49.8 in September - the third straight month of decline in manufacturing activity. The decline reflected accelerated contractions in output and new orders, due partially to shortage of qualified staff. further shortage of qualified staff. Input cost inflation eased for a fourth consecutive month.
Bank of Canada governor Tiff Macklem and senior deputy governor Carolyn Rogers will be testifying before the Senate banking committee this evening at 6 p.m ET. Bank of Canada officials are typically called in to testify following the release of the April and October monetary policy reports. Last week, the central bank raised interest rates for the sixth time this year, with a 50 bps move.