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The S&P/TSX Composite posted small gains Thursday as US markets approached Thanksgiving

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TORONTO — Canada’s major stock indices posted small but broad gains Thursday for markets south of the border during the Thanksgiving holiday.

Michael Curry, senior investment advisor at TD Wealth, said volume was low on the TSX Thursday as US markets were closed for a holiday, and an early close is likely on Friday in New York.

The S&P/TSX Composite Index rose 61.81 points to 20,344.07, with smaller gains across most sectors on the TSX.

A story for the markets was the Bank of Canada governor’s appearance before lawmakers in Ottawa on Wednesday night, Currie said, standing by his words and reiterating the need to raise rates.

Tiff McCallum said the Bank of Canada is on track to lose money for the first time in its history, but insisted it would not change the central bank’s policy to fight inflation. Curry said this new development is a sign of the current unprecedented times, but McCallum “underestimates it”.

Meanwhile, former Bank of Canada governor Stephen Poloz said in a speech Thursday that the economy is more sensitive to interest rates today than it was a decade ago.

The Canadian dollar traded at 74.97 cents against 74.67 cents on Wednesday.

The crude oil contract in January fell 3.01 cents to $77.94 a barrel and the natural gas contract in January fell 30 cents to $7.71 per mmBTU.

Curry said talks over a cap on Russian oil prices continued and US inventories were higher last week. He said he expected both factors to put downward pressure on oil, but added that prices had only bottomed out on Thursday.

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Curry noted that while the TSX is only down about four percent so far, the weight of the increase is being carried by the big gains in energy.

“It’s been a very, very big benefit for the year,” he said.

There could be a little more volatility than usual by the end of the month next week, Curry said, but he remains relatively optimistic about the rest of 2022.

“Historically, the indicators would say we’re probably in pretty good shape,” he said.

The December gold contract was up $5.70 to $1,745.60 an ounce and the December copper contract was up less than half a percent to $3.62 an ounce.

This report from The Canadian Press was first published on November 24, 2022.

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

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