February 22, 2013 saw the lowering of the TSX over the preceding two sessions following uncertainties regarding the prospects of the economic incentives of the U.S. along with demands for help to the jobless.
Therefore the stock market of Toronto closed higher, with the progress by 61.65 points of the S&P/TSX composite index to 12,701.63. With the exception of the tech stocks, the other market sectors were encouraging. There was a leap in the TSX Venture Exchange by 10.71 points and it reached 1,144.68.
Retail sales had been steadily growing for five months prior to the month of December. After that, they fell 2.1% following a dwindling in vehicle sales. But this decrease fell below the anticipated figures of economic experts by more than 0.3%.
Thus, after suffering the lowest figure of 97.51 cents US in eight months, now the Canadian dollar has again dropped 0.2 of a cent at 97.96 cents US and the overall motor sales, save those by dealers of motor vehicles and their parts, shrunk by 0.9%.
The U.S. dollar grew strong on Wednesday after the Federal Reserve released minutes of its meeting. There were extreme losses experienced by the commodity sector and hence this resulted in their mixed prices. The energy sector looked good as it rose 1.2%. The decent performers were Cenovus Energy (TSX: CVE) and Canadian Natural Resources (TSX: CNQ).
While the former grew better to C$32.78; up 41 cents, the latter touched $30.37; a jump by 38 cents. As regards the financial sector, it soared 0.49%, mainly due to expectations of good performances by the banks in the earnings quarters; the results being due in this week.
With the minutes of the Federal Reserve meeting relaying that central bank are supporting gold in its quantitative easing, the strategy of buying of bonds has created concerns about whether the inflation will mount. Resultantly, the bullion prices have dropped.
BlackBerry (TSX: BB) had had to witness a downgrading of its stock on Friday by MKM Partners from neutral one to sell after which it suffered a descent by 65 cents to $13.48; contributing to a decline by 0.38% of the information technology sector. The reason attributed for the same was the feeling by the firm that the new Blackberry 10 operating system would not succeed quite effectively and so the price target for the same was lowered for the coming twelve months from $12 to US$10.
According to economic experts, the Canadian stock market could be poised towards a pullback in the near term after the rally which saw its best eighteen-month highs. There is the possibility that the resources shares could be greatly susceptible and that the stock market correction; if it happens, could send the market down by a considerable 10%.
In the interim, the low inflation that has set in Canada has further subsided in the month of January. As compared to the consumer price index in January 2012, this year it rose by 0.5%. Still, as per Statistics Canada, this increase is quite diminutive if judged against what it gained in the month of December (0.8%) and the tiniest after October 2009.