Economy

FXTM: 'disconnect' between economy, stocks; long-term key to be virus trajectory – Kitco NEWS

Published

4 years ago

April 20, 2020

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Stocks are far outperforming the economy for now, but the future may hinge on whether there is another wave of COVID-19 infections as economies reopen, said Hussein Sayed, chief market strategist with FXTM. “The 31% rally in the S&P 500 since hitting a bottom of 2,191 on March 23 has been truly incredible,” the strategist said. “Economic factors should be the key determining factor for equity markets, but there seems to be an enormous disconnect between the performance of stocks and the economy.” Economic data are likely to remain dire, with U.S. jobless claims already falling more than 20 million since the start of lockdowns. The bounce in stocks is due to massive monetary accommodation and fiscal-stimulus efforts, Sayed said. The key, the strategist continued, will be the trajectory of the COVID-19 virus and how fast economies reopen. Some European governments are taking cautious steps toward reopening economies. “We will learn a great deal from these governments and countries of how life will look like in the near future,” Sayed continued. “But what if the virus infection rate begins to accelerate again and another lockdown is imposed? That is going to be a disastrous outcome, and instead of confronting a steep recession, we might end up with a long-lasting depression. Without a vaccine and proper treatment, life will not return to normal and spending behavior will continue to adjust to this new reality. Equity performance cannot diverge for a prolonged period of time from fundamentals, so if we do not see a true economic recovery in the coming months, expect another leg lower in stock markets.”

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

16 hours ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

24 hours ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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