October 28th 2022, 9:33:05 pm

(about 7 months ago)

Half of the US companies reported earnings that look not too bad

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The North American markets ended the week with sizable gains as half of giant US companies reported their third-quarter earnings which weren’t as gloomy as markets imagine. Giants like Apple recorded all-time revenue and pushed the markets higher, while Amazon and Meta face huge market value losses on very weak guidance report. S&P 500 and Nasdaq added 3.95% and 2.24% respectively and Canada’s S&P/TSX Composite advanced 3.24% this week.


Canadian stock market in specific welcomed the move by the Bank of Canada to increase their policy interest rate by 0.5% to 3.75% which was lower than the 0.75% rate hike expected. The move came as the latest inflation report in Canada showed that inflation is starting to cool off. Unlike the US which has a higher inflation print, Canada may not remain need to have an as hawkish tone as US central bank going forward.


The US central bank is expected to increase the interest rate by another 0.75% in their next meeting which coupled with lower oil prices may put more pressure on the Canadian dollar. The Canadian dollar has been among the currencies which did well against the US dollar in the past couple of months. The US dollar stands at 1.36 Canadian dollars as of Friday.


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