Market Review

January 18, 2023

EQUITY INDICES

LAST

CHANGE

%CHG

52 WK-HIGH

52 WK-LOW

YTD

DOW JONES INDUSTRIAL AVERAGE

33,296.96

-613.89

-1.81%

35824.28

28660.94

0.45%

S&P 500

3,928.86

-62.11

-1.56%

4637.30

3491.58

2.33%

NASDAQ COMPOSITE

10,957.01

-138.10

-1.24%

14740.54

10088.83

4.69%

S&P/TSX COMPOSITE

20,376.23

-81.23

-0.40%

22213.07

17873.18

5.11%

STOXX EUROPE 50

3,915.11

2.70

0.07%

3920.39

3279.47

7.21%

FTSE 100

7,830.70

-20.33

-0.26%

7875.58

6707.62

5.09%

DAX PERFORMANCE-INDEX TR

15,181.80

-5.27

-0.03%

15912.33

11862.84

9.04%

CAC40

7,083.39

6.23

0.09%

7211.24

5628.42

9.42%

NIKKEI 225 INDEX

26,791.12

652.44

2.50%

29222.77

24681.74

2.67%

HANG SENG INDEX

21,678.00

100.36

0.47%

25050.59

14597.31

9.59%

Shanghai SE Composite Index

3,224.41

0.16

0.00%

3578.73

2863.65

4.37%

Market Review

U.S. major averages fall after hawkish Fed commentary

The U.S. major averages opened higher after U.S. producer price data offered more evidence that inflation was receding, raising hopes that the Federal Reserve would slow the pace of interest rate hikes. However, the gains were short-lived after hawkish commentary from Federal Reserve officials indicated the Fed will likely stay on a more aggressive path. St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester stressed on the need for the Fed to raise rates beyond 5% to curb inflation. San Francisco Fed President Mary Daly said the February rate hike could be either 25 or 50 basis points. Sentiment was also dented by disappointing U.S. retail sales and industrial production data that raised concerns about an economic recession.

All 11 S&P 500 sectors traded firmly in the red, with consumer staples, utilities and financial sectors showing the steepest losses. In earnings news, PNC Financial Services Group and Charles Schwab fell after missing estimates for fourth quarter profit. United Airlines Holdings fell despite providing an upbeat profit forecast. J.B. Hunt Transportation, Prologis and Interactive Brokers rose after their quarterly results. In other corporate news, Microsoft fell after it said it was cutting 10,000 jobs and taking a US$1.2 billion charge as it braces for slower revenue growth. Moderna jumped after reporting positive trial results for its RSV vaccine. On the economic front, U.S. retail sales fell 1.1% in December, below consensus expectations for a 0.8% decline. Adding to the disappointment November's data was revised downward from -0.6% to -1.0%. U.S. producer price inflation declined 0.5% in December, versus economist expectations for a decline of 0.1%. The manufacturing sector continued to weaken in December, with industrial production contracting 0.7% last month, well below economist forecasts of a 0.1% decline. November's data was also revised lower. Finally, the Federal Reserve released its Beige Book survey that showed U.S. firms are pessimistic about economic growth this year.

Canada's TSX Composite Index reversed early gains on Wednesday, as the market weighed worries about a possible U.S. recession against optimism of a recovery in China's economy. Nine of the 11 main sectors on the TSX traded in the red, led by losses in the energy sector. Materials was the top performing sector. In corporate news, France's BNP Paribas said it has received all the necessary regulatory approvals to complete its previously- announced sale of its U.S. unit Bank of the West to Bank of Montreal. Wesdome Gold Mines Ltd plunged after reporting lower-than expected production in the fourth-quarter. Today's economic data pointed to easing inflation, prompting traders to raise bets that the Bank of Canada could slow its pace of monetary policy tightening. Canadian producer prices fell 1.1% in December from November on lower prices for refined petroleum energy products, as well as softwood lumber.

S&P/TSX: LEADERS

LAST

CHANGE

%CHG

Dundee Precious Metals Inc

$8.80

$0.90

11.39%

MTY Food Group Inc

$64.44

$3.72

6.13%

Algoma Steel Group Inc

$9.14

$0.44

5.06%

Capstone Copper Corp

$6.41

$0.28

4.57%

Ero Copper Corp

$21.19

$0.92

4.54%

S&P/TSX: LAGGARDS

LAST

CHANGE

%CHG

Wesdome Gold Mines Ltd

$6.47

-$1.30

-16.73%

Pason Systems Inc

$15.69

-$0.87

-5.25%

Tilray Brands Inc

$4.13

-$0.21

-4.84%

Birchcliff Energy Ltd

$8.69

-$0.44

-4.82%

BELLUS Health Inc

$10.16

-$0.43

-4.06%

S&P/TSX INDUSTRY

LAST

CHANGE

%CHG

YTD

ENERGY

244.43

-2.25

-0.91%

0.59%

MATERIALS

350.79

2.76

0.79%

7.05%

UTILITIES

311.29

-1.17

-0.37%

5.46%

FINANCIALS

370.50

-1.95

-0.52%

5.25%

INDUSTRIALS

397.32

-3.10

-0.77%

4.17%

HEALTH CARE

21.72

-0.29

-1.32%

11.84%

CONS. DISCRETION.

266.35

-2.14

-0.80%

5.68%

CONS. STAPLES

841.76

-5.39

-0.64%

2.27%

INFO TECH.

147.31

0.08

0.05%

8.00%

COMMUNICATION SVS

192.95

-0.73

-0.38%

3.71%

REAL ESTATE

327.19

-0.42

-0.13%

8.74%

GOVERNMENT BONDS

2YR

5YR

10YR

30YR

CANADA (YLD%)

3.48%

2.80%

2.72%

2.85%

U.S. (YLD%)

4.08%

3.43%

3.37%

3.54%

COMMODITIES/ FX

LAST

CHANGE

%CHG

YTD

CRUDE OIL WTI

$79.25

-$0.93

-1.16%

-1.26%

NATURAL GAS

$3.29

-$0.30

-8.25%

-26.56%

GOLD

$1,903.20

-$4.00

-0.21%

4.59%

COPPER

$4.22

$0.00

0.07%

10.71%

CAD / USD

$0.7408

-$0.0059

-0.79%

0.41%

CAD / EUR

€0.6864

-€0.0057

-0.82%

-0.41%

USD / EUR

€0.9265

-€0.0004

-0.04%

-0.81%

USD / JPY

¥128.83

¥0.70

0.55%

-1.74%

Source: Refinitiv

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Disclaimer

National Bank of Canada published this content on 18 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 January 2023 21:29:39 UTC.