TSX rallies; Crude bounces; Canadian Companies Lose Confidence, Expect Slow Growth By Investing.com
© Reuters.
By Ketki Saxena
Investing.com — After last week’s sharp selloff, the and Wall Street opened in the green this morning as positive BofA earnings set the tone for risk sentiment. So far, rising rates have boosted interest income from lenders in the third quarter, although turbulent markets have hampered transactions and banks continue to increase provisions for credit losses to prepare for a slow-down.
Equities were also supported by a decline in benchmark US 10-year bond yields, which fell from multi-year highs.
The commodity-heavy Canadian index was also buoyed by crude gains as several OPEC+ members over the weekend expressed support for the bloc’s 2 million bpd production cut. , reiterating the need to support oil prices amid slowing growth.
Bay Street’s Greatest Stories
RBC (TSX:) sells part of its investor services unit to CACEIS, the asset servicing division of French Bank Agricultural credit (APE:). The sale of RBC’s European asset servicing business is expected to be completed by the end of the third quarter of 2023. The deal would net CACEIS approximately 4.8 trillion euros ($4.7 trillion) assets in custody and 3,500 billion euros in assets. under administration, said CACEIS.
Loblaw has announced a price freeze on more than 1,500 of its No Name brand food products beginning next week until the end of January 2023, as it seeks to protect consumers from soaring food prices. The company blamed “increasing supplier costs due to fuel, labor, weather and global conflicts” for the rapidly rising food prices, which were passed on to retailers. Loblaw and his peers have been accused of price hikes, including by federal NDP leader Jagmeet Singh.
Canadian stocks move the markets this morning
Top winners:
- Speed of Light (TSX:)
- Denison Mines (TSX:)
- Blackberry
Main losers:
- Methanex
- Ero Copper (TSX:)
- Filo Mining Corporation (TSX:) (-0.78%)
In the Canadian economy
The Bank of Canada’s Third Quarter Business Outlook Survey and Consumer Expectations Survey revealed that business confidence has softened. The report notes that “companies expect sales growth to slow as interest rates rise and demand growth approaches pre-pandemic levels. Early signs suggest that price and wage pressures have started to ease, but corporate inflation expectations remain high.
The Bank of Canada’s Survey of Consumer Expectations (CCHS) showed that 50% of Canadians are cutting spending, while 78% see more than a 50% chance of a recession.
