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TSX Tracks Wall Street Higher; Teck Sales Fall; West Fraser Timber Cuts Production

Published 2023-01-11, 12:38 p/m
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By Ketki Saxena 

Investing.com – The TSX tracked Wall Street higher this morning, as investor sentiment firmed ahead of tomorrow’s all important US CPI data. Estimates are for a moderation in inflationary pressures, which investors hope will ease the US Fed’s aggressiveness in early February.

Boosted by a decline in treasury yields, growth stocks led North American indices higher this morning. The commodity heavy Canadian index was supported by gains in crude as investors hoped for a less hawkish Fed. Crude also gained some support from worries of reduced supply related to sanctions on Russia - despite higher than expected crude stocks buildup in the US. 

The Biggest Stories on Bay Street

Teck Resources (TSX:TECKa) in the fourth quarter announced steelmaking sales well below forecasts, coming in at 4.3 million tonnes in the quarter compared to its forecast for 5.4 million tonnes. Sales were hampered by extreme cold weather that hampered Teck’s ability ability to ship coal by rail. The news comes a day after Teck Metals, a subsidiary of Teck Resources, was ordered to pay $2.2 million in federal and provincial fines for an effluent spill into the Columbia River in BC. 

West Fraser Timber (TSX:WFG) continues to curtail production due to a weak macroeconomic environment, as the low lumber price environment impacts its ability to operate profitably. West Fraser will now is indefinitely curtailing production at its Perry Sawmill in Florida later this month, impacting 126 jobs and reducing the company's U.S. production by 100 million board feet. 

After announcing its $234 million investment in US based VettaFi,  TMX group says it is only the beginning of the many merges and acquisitions it hopes to conduct this year. TMX Chief Operating Officer Jay Rajarathinam noted “We hope to be doing more of these acquisitions, partnerships as well as organically building out some of the capabilities” to help TMX group orient itself to a more holistic information service business in addition to its trading and clearing capabilities. 

The deal between First Quantum and the Panamanian government still have “more than a few pending disagreements” in reaching a deal, Panama’s Ministry of Commerce and Industry said yesterday, hours after First Quantum said it would co operate with the government. Panama is looking for a number of concessions from the company, including putting a US$375 million floor on annual payments. 

Canadian Stocks Moving Markets Today

Top Gainers: 

  • Paramount Resources Ltd . (TSX:POU)
  • Capstone Mining Corp (TSX:CS)
  • Tilray (TSX:TLRY)

Top Losers: 

  • Filo Mining Corp (TSX:FIL)
  • Osisko (TSX:OSK) MIning 
  • Equinox Gold (TSX:EQX)

No Major Canadian Economic Data Expected

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