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TXPR closed at 559.28, down 1.87% on the day. Volume today was 1.64-million, highest of the past 21 trading days.

CPD closed at 11.11, down 1.77% on the day. Volume was 256,720, highest of the past 21 trading days.

ZPR closed at 9.30, down 1.69% on the day. Volume was 269,210, third-highest of the past 21 trading days.

Five-year Canada yields were up to 3.65% today.

Markets in general were pretty bad. Pundits had to stretch for a rationale:

The TSX, S&P 500 and Nasdaq ended lower on Tuesday, with indications from the Bank of England that it would support the country’s bond market for just three more days adding to market jitters. Stocks were also volatile ahead of U.S. inflation data and the start of third-quarter earnings later this week.

The Canadian benchmark index fared worse than its U.S. counterparts, as energy stocks fell briskly and cannabis stocks continued to give back gains from last week, when U.S. President Joe Biden revealed he will review how cannabis is classified as a controlled substance. The TSX closed nearly 2% lower to its lowest level since March 2021.

Bank of England Governor Andrew Bailey told pension fund managers to finish rebalancing their positions by Friday when the British central bank is due to end its emergency support program for the country’s bond market.

The September 2022 Survey of Consumer Expectations was released:

Inflation

Median one-year-ahead inflation expectations continued to decline in September, falling by 0.3 percentage point to 5.4%, its lowest reading since September 2021. In contrast, three-year-ahead inflation expectations rose slightly to 2.9% from 2.8% in August. The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) was unchanged at the one-year horizon and decreased at the three-year horizon.
Median five-year-ahead inflation expectations, which have been elicited in the monthly SCE core survey on an ad-hoc basis since the beginning of this year and were first published in July 2022, increased by 0.2 percentage point to 2.2%. Disagreement across respondents in their five-year-ahead inflation expectations declined in September.
Median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—decreased at the short-term horizon and was unchanged at the medium-term horizon.
Median home price growth expectations declined by 0.1 percentage point to 2.0, its lowest reading since June 2020. The decline was most pronounced among respondents with a college education and annual household income over $100k, but was broad based across geographic regions. Home price growth expectations remain subdued relative to their pre-pandemic levels.
Expectations about year-ahead price changes rose by 0.4 percentage points for gas (to 0.5%), 1.0 percentage point for food (to 6.9%), 0.6 percentage point for college education (to 9.0%) and 0.1 percentage point for rent (to 9.7%). The median expected change in the cost of medical care, on the other hand, fell by 0.1 percentage point (to 9.2%).

This entry was posted on Tuesday, October 11th, 2022 at 9:43 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.