BANXA Holdings deepens push into US market with new payment solutions and Reno-based team
Infinity Stone Ventures expands its land position in the James Bay lithium district in Quebec
SPC Nickel posts more encouraging drill results from its Lockerby East project in Sudbury, Ontario
Hapbee Technologies launches ‘Routines By’ featuring wellness routines developed and shared by Hapbee users
Mindset Pharma files 16 national patent applications to protect family of novel next-generation psychedelics
PyroGenesis Canada awarded additional projects for magnesium processing
Lavras Gold hits ‘bonanza’ gold grades from first drilling at Zeca Souza target at Lavras do Sul project
Jushi Holdings debuts cannabis-infused chocolates; marks entry into edibles market
GR Silver Mining (TSX-V:GRSL) hails latest drill results, which show resource expansion potential at San Marcial area of Plomosas
Ortho Regenerative Technologies announces name change to ChitogenX
Delta 9 Cannabis completes acquisition of three retail cannabis stores in Manitoba
Alkaline Fuel Cell Power says Belgium subsidiary earns ISO certification
Givex Information Technology launches point of sale system for three hotels in Mexico
Endexx says its Blesswell premium skincare line for men is now available via Amazon.com
Standard Uranium plans to conduct a non-brokered private placement to raise gross proceeds of up to C$3.5M given the current strength of the global uranium sector
9.35am: More equity losses expected
US stocks opened mixed on Wednesday following a Wall Street Journal report that a 75 basis point rate hike by the Federal Reserve later this month is likely.
Just after the open, the Dow Jones Industrial Average had dipped 13 points at 31,132 points.
The S&P 500 was up 3 points at 3,911 points and the Nasdaq Composite had gained 34 points at 11,579 points.
CityIndex and FOREX.com market analyst Fawad Razaqzada said sentiment towards equities, bonds, cryptos, metals, and foreign currencies remained negative.
“Investors appear reluctant to buy anything in this macro environment, where inflation is soaring, global growth is weakening, and central banks are tightening,” he said.
“Also not helping is the fact we are in a bear market, where traders are happy to sell into the rallies than buy the dips. At this stage, there are not many technical or indeed fundamental signs to appease the bulls. So, expect more losses for equity markets.”
6:30am: Fleeting relief?
US stocks were expected to open slightly higher on Wednesday following sharp recent falls as investors ponder the prospect for more interest rate hikes, elevated levels of inflation, and a stronger dollar.
Futures for the Dow Jones Industrial Average were trading flat pre-market, while those for the broader S&P 500 index were up 0.1%, and futures for the tech-laden Nasdaq-100 were 0.2% higher.
The three major US indices fell on Tuesday, US bond yields spiked and the dollar extended its rally, as Americans returned from their Labor Day break, noted Ipek Ozkardeskaya senior analyst at Swissquote Bank.
“The S&P 500 closed a couple of points above the closely watched 3900 mark, the major Fibonacci 61.8% retracement on the summer rally, which, if cleared should point at a deeper bearish trend in the medium run,” she added.
The US Federal Reserve’s recent series of interest rate increases and its determination to fight inflation with more rate hikes have kept investors on edge as they fear that economic activity in the world’s biggest economy will start to waver. While economic data, especially in the labor market, continue to hold up well, many expect headline figures to soften over the coming months.
These factors are putting equities under pressure although each bout of selling is likely to be tempered by a spot of bargain hunting in US markets, especially as investors look to avoid turbulence in global markets.
Ozkardeskaya pointed out that the equity sell-off has deepened as US companies rush to sell bonds before it gets more expensive.
She noted: “Yesterday alone, 19 US companies including big names like Nestle, Walmart, Target and McDonalds issued a large amount of bonds – about $30 to $40 billion – following an almost 60bp point jump in high-grade yields since the beginning of August. That’s the largest amount sold since September last year.”
The demand for bonds pushed the US 2-year Treasuries yield above 3.50%, and the 10-year yield above 3.35% for the first time since mind-June, she added.
Contact the author at jon.hopkins@proactiveinvestors.com
OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
