The Daily Chase: Tech stocks extend drop; Call for new tax on homes
BNN Bloomberg
Tech stocks remain at the top of our radar today after they dragged down the major North American markets yesterday as traders weighed the outlook for how soon and how aggressively the U.S. Federal Reserve will raise rates.
Tech stocks remain at the top of our radar today after they dragged down the major North American markets yesterday as traders weighed the outlook for how soon and how aggressively the U.S. Federal Reserve will raise rates. Shopify wasn’t immune to the selling pressure, as its Toronto-listed shares fell the most since Nov. 9, 2020. For now, Nasdaq futures have pared losses but are still pointing to a soft open. A catalyst will land in the second half of the trading day when minutes from the last Federal Open Market Committee meeting are released. Of course, what’s bad for tech is good for financials in this case: the rate-liftoff conversation fuelled interest in bank stocks yesterday, which allowed the S&P/TSX Composite Index to close higher (barely).
CALLING FOR NEW TAX ON HOMES
A research organization funded by Canada Mortgage and Housing Corporation and the federal government is calling for a tax on homes worth more than $1 million. Pointing to an estimated $3.2 trillion in housing wealth that homeowners have accumulated since 1977, Dr. Paul Kershaw is recommending the federal and/or provincial governments implement a progressive (up to one per cent), deferrable tax on homes valued at $1 million and higher. Is this the antidote to the culture of “inequality and complacency” that he describes? We’ll chase deeper insight.
RBC’S TOP INVESTING IDEAS
The equity research team at RBC Capital Markets is out with its top ideas for 2022, and there’s a whole lot of CanCon. From a big telco, to a financial heavyweight, one of two rail giants, and a vehicle-management company that’s been navigating the global semiconductor shortage – those are just some of sectors where RBC looked to Canada for its top recommendations to global clients this year. We’ll dig into the details today.
‘A REAL CRISIS’ FOR EMPLOYERS
