S&P/TSX composite index ticks back up on Wednesday as U.S. markets droop
Global News
The S&P/TSX composite index rose 69.29 points to 20,275.27, boosted by energy stocks and partially offset by health care and metals.
Canada’s main stock market inched upward in trading on Wednesday, rebounding slightly from the day before even as U.S. markets sagged.
The S&P/TSX composite index rose 69.29 points to 20,275.27, boosted by energy stocks as oil prices were up and partially offset by health care and metals.
Philip Petursson, chief investment strategist at IG Wealth Management, called it “a little bit more of a defensive day,” with telecom, staples and utilities stocks up.
“These are very, very defensive sectors. I think investors are just positioning themselves for the potential for a little bit more volatility as we head into the fall,” said Petursson.
“We’ve seen some weaker global economic data this week, specifically with China, where they’re seeing much lower inflation, in fact deflation, in some segments of their economy and that’s just weighing on overall investor sentiment globally.”
He said equity investors are shifting out of the economically sensitive sectors into more defensive ones.
Another factor benefiting the TSX is the much cheaper valuation of Canadian stocks compared with those in the U.S., which could be attracting some foreign investors into Canada, said Petursson.
In New York, the Dow Jones industrial average dropped 191.13 points to 35,123.36. The S&P 500 index was down 31.67 points at 4,467.71, while the Nasdaq composite fell 162.31 points to 13,722.02.
