PrefBlog

TXPR closed at 582.15, down 1.20% on the day. Volume today was 1.60-million, highest of the past 21 trading days. The market actually rallied a bit in the extended session – TXPR was at 580.27 at 4:00pm.

CPD closed at 11.52, down 2.29% on the day. Volume was 193,120, by far the highest of the past 21 trading days.

ZPR closed at 9.72, down 2.02% on the day. Volume of 327,260 was by far the highest of the past 21 trading days.

Five-year Canada yields were down slightly to 3.34% today.

Equities got hammered:

Global stocks fell sharply on Friday, sending the Dow Jones Industrial Average to a new low for the year as economic developments raised fresh concerns of a deteriorating global economy that may be teetering on the edge of recession.

The S&P/TSX Composite Index fell nearly 2.8 per cent, to 18,480.98, its worst performance in more than three months. The Canadian benchmark is now just 152 points above its 2022 low close in mid-July.

The broader S&P 500 index fell 1.7 per cent, to 3,693.23, putting it within 26 points of its recent low in mid-June. The Dow ended the day down 1.6 per cent.

The declines followed the release of business surveys from France, Germany and Britain, which showed that manufacturing activity contracted sharply in all three countries in September, as Europe confronts soaring energy prices and geopolitical instability from the war in Ukraine.
…
An attempt on Friday by the British government under Liz Truss, the new Prime Minister, to support economic growth appeared to trigger further disorder in financial markets.

The government’s sweeping tax cuts in its mini-budget pushed up British borrowing costs dramatically as bond yields soared and sent the pound tumbling more than 3 per cent to a new 37-year low against the U.S. dollar.
…
The latest sentiment survey from the American Association of Individual Investors, for the week ended Sept. 21, showed that 60.9 per cent of respondents felt bearish about the stock market over the next six months.

That was the survey’s most dour reading since 2009 during the financial crisis.

Retail spending also appears to be taking a hit. Canadian retail sales in July fell 2.5 per cent, according to a report released on Friday.

The decline was significantly greater than the 2 per cent drop that economists had been expecting. Though falling gasoline prices explained a big part of the decline, sales fell in nine of 11 categories, suggesting a broader downturn amid rising borrowing costs.

Meanwhile, at the BoC:

Union leaders are calling on the Bank of Canada to halt further interest-rate hikes, arguing that the brunt of a potential recession will be borne by Canadian workers whose wages are already lagging behind inflation.

A group of top labour leaders recently met with BoC Governor Tiff Macklem to make the case for restraint. The central bank has increased interest rates five times since March, and union leaders are concerned that it is not paying enough attention to the damage that further monetary policy tightening could do to employment.

“It can take a year or more to see the full impact of the bank’s actions and that’s why we recommended to them a wait-and-see approach,” said Mark Hancock, national president of the Canadian Union of Public Employees, who attended the virtual meeting on Sept. 16.

This entry was posted on Friday, September 23rd, 2022 at 9:13 pm and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.