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REVIEW OF MARKETS. The Toronto Stock Exchange was trading lower on Wednesday morning, pulled down by losses in the information technology sector, while major US indices were trading in a scattered manner.
The New York Stock Exchange opened slightly higher, with the Nasdaq and S&P 500 indices slowly reaching their highs of the year.
To consult the market news (again)
Stock indices at 12:25 p.m.
In Toronto, the S&P / TSX loses 70.87 points (-0.35%) at 19,984.73 points.
In New York, the S&P 500 fell 14.39 points (-0.34%) to 4,269.46 points.
The Nasdaq dropped 139.59 points (-1.05%) to 13,136.83 points.
The DOW increases by 57.48 points (+0.17%) to 33,630.76 points.
The loonie rises by 0.0018 (+0.24%) to US $ 0.7482.
Oil takes $ 1.18 (+1.64%) to $ 72.92 US.
Gold falls by $ 20.70 US (-1.04%) to $ 1,960.80 US.
Bitcoins rises by $ 181.73 US (+0.69%) to $ 26,401.80 US.
The context
“Here is another morning where trading is hesitant,” noted Patrick O’Hare of Briefing.com. “The market restraint is due in particular to the conviction that mega-cap stocks are at risk of falling and will exert a predominant pressure on the major indices,” added the analyst.
Even opinion among Schwab analysts who believe that “indices are bumping up against a technical resistance level and don’t seem to be in a hurry to exceed this limit.”
This idea of investor rotation towards smaller-capitalized names was reflected in the strong rise of the Russell 2000 index (+1.71%), which had already closed sharply higher the day before.
Half an hour after the market opened, the Bank of Canada raised its benchmark rate by 0.25 points, which slightly slowed the positive evolution of New York indices as investors await the Fed’s monetary policy meeting next week.
The Bank of Canada has thus reversed its decision to pause its rate hikes. Bond yields responded immediately, with the 10-year Treasury yield rising to 3.74% by 10:30 a.m. from 3.66% the previous day.
In terms of today’s indicators, the US trade deficit widened to its highest level in six months due to a marked drop in exports (-5.3%), which may weigh on US growth in the second quarter.
Furthermore, the OECD raised its global growth forecast to 2.7% for 2023, but warned that the road would be “long” for sustainable growth.
Another piece of news that tempered stockbrokers’ enthusiasm: China’s historically key growth lever exports went back into the red in May and imports remain struggling.
In a context of global inflation, China’s exports contracted more than expected last month at -7.5% YoY, the first decline since February, according to China Customs dollar figures released.
On the exchange, after a difficult day, which saw the stock drop 12.09%, the cryptocurrency exchange platform Coinbase (COIN) rebounded, rising more than 3%.
Targeted by a lawsuit by the US market watchdog, the SEC, which accuses it of not having registered with it, the platform benefited from the announcement of investment firm ARK, which acquired 400,000 Coinbase shares.
The agri-food group Campbell Soup, made famous by Andy Warhol, fell 5.84% despite results exceeding expectations and confirmation of annual forecasts. Its margins have nevertheless eroded.
Tesla (TSLA) advanced 3.87%, following an appeal decision by a Delaware court, which again dismissed the shareholders’ demand of the automaker denouncing the terms of the takeover of solar panel maker SolarCity.
The regional bank PacWest (PACW) once considered the new weakest link in the US banking system, rose 5.88%. Since its early May low, its stock price has more than tripled (+337%). Other regional banks were in the green like Western Alliance Bancorporation (WAL, +1.88%) and de Sion (ZION, +1%).
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