Canada's main stock index ended higher on Thursday, helped by strength in the energy and technology sectors, while U.S. stocks posted more modest gains.
The S&P/TSX Composite Index rose 148.26 points to 21,942.16.
In New York, the Dow Jones Industrial Average rose 36.26 points to 39,164.06, the S&P 500 added 4.97 points to 5,482.87 and the Nasdaq Composite added 53.53 points to 17,858.68.
The rise in U.S. stocks over the past few days is due to different reactions to economic news: The assumption of a slowdown in the U.S. economy is already priced into forecasts, while the possibility of a pullback from the record highs of the past six months has only recently begun to be recognized in the U.S., one expert said.
“We've seen a little bit of data recently that suggests the U.S. economy is finally showing signs of slowing a little bit,” said Michael Greenberg, head of portfolio management for the Americas at Franklin Templeton Investment Solutions.
“The slowdown in Canada isn't that big a surprise, so stocks may be able to move up a little bit more. Meanwhile, in the U.S., the stock market has obviously been very strong and maybe that's just calming down a little bit today.”
In Canada, energy stocks rose on Thursday despite continued crude production limits by OPEC members and Russia.
“OPEC and other countries are trying to reduce supply a little bit to keep prices from soaring, they're managing their energy supplies, but at the same time, there are some signs of weakness on the demand side,” he said.
In the technology sector, BlackBerry shares rose nearly 11 percent on Thursday, lifting the technology index. The Waterloo, Ontario-based company's CEO told analysts Wednesday evening that the separation plan has saved millions of dollars so far and put the business on a path to profitability.
However, falling base metals prices weighed on the S&P/TSX throughout the day.
“They will depend a lot on expectations around economic growth,” Greenberg said, pointing to subtle warning signs from the U.S. and China.
All eyes in the U.S. and around the world are on the first presidential debate scheduled for Thursday night, a television spectacle that could move markets.
“The general consensus is that with President Trump, there will be a little less regulation on areas like energy. Biden may put more emphasis on EVs and environmental issues,” Greenberg said.
“If one of the candidates really fails, that could lead to a boom in some parts of the market.”
In Canada, analysts are awaiting the release of economic output data on Friday.
The Canadian dollar traded at 73.05 cents per U.S. dollar on Thursday, up from 73.01 cents on Wednesday.
August crude oil futures rose 84 cents to $81.74 per barrel, while August natural gas futures fell 6 cents to $2.69 per mmBTU.
August gold futures rose $23.40 to $2,336.60 an ounce, while September copper futures fell 2 cents to $4.35 a pound.
This report by The Canadian Press was first published June 27, 2024.
Companies featured in this story: (TSX:GSPTSE, TSX:CADUSD, TSX:BB)
Christopher Reynolds, The Canadian Press
