S&P/TSX edges lower, U.S. stock markets mixed ahead of busy week

TORONTO — Canada's main stock index dipped Monday while U.S. markets were mixed ahead of a busy week that will see lots of economic data, the start of U.S. earnings season, and a Bank of Canada interest rate decision.

The S&P/TSX composite index was down 4.08 points at 22,260.30.

In New York, the Dow Jones industrial average was down 11.24 points at 38,892.80. The S&P 500 index was down 1.95 points at 5,202.39, while the Nasdaq composite was up 5.43 points at 16,253.96.

Markets were flat, but leaning into the green for most of the day in a much calmer showing compared with last week’s volatility, said Mona Heidari, senior financial advisor at BlueShore Financial.

But that volatility is likely to return as the week rolls on, she said.

“There’s a lot that’s happening this week,” she said.

Wednesday will bring the Bank of Canada’s interest rate decision, as well as U.S. consumer inflation data.

Later in the week, more inflation data in the U.S. will come, followed by the U.S. banks kicking off earnings season on Friday, she said.

The Bank of Canada is largely expected to hold its key rate, said Heidari, but a cut isn’t out of the question as the Canadian economy has been much less resilient under the weight of rate hikes than the U.S. economy.

But even if they don’t cut, investors will be looking for anything in officials’ comments that could give a hint to the bank’s longer term plans.

Meanwhile, the U.S. Federal Reserve isn’t likely to cut before June, said Heidari. Wednesday’s core CPI report is expected to be a little lower, she added, but investors are concerned about the impact rising energy and gold prices could have on headline inflation.

“We still have some tensions going on in the Middle East, and we have the oil prices and energy prices going up,” she said.

Gold has been on the rise likely because “investors run to gold as a hedge for inflation,” Heidari said.

The Canadian dollar traded for 73.63 cents UScompared with 73.54 cents US on Friday.

The May crude oil contract was down 48 cents at US$86.43 per barrel and the May natural gas contract was up six cents at US$1.84 per mmBTU.

The June gold contract was up US$5.60 at US$2,351.00 an ounce and the May copper contract was up four cents at US$4.28 a pound.

-- With files from The Associated Press

This report by The Canadian Press was first published April 8, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Rosa Saba, The Canadian Press