Canada Stocks: Toronto stocks muted as energy losses offset by utilities gains

Canadian Utilities

26/10/2023 15:29

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      Energy stocks lead losses
    

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      Utilities lead among gainers
    

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      Canada Sept factory sales likely fell 0.1%
    

  
 (Updated at 9:56 a.m. ET)
    By Shubham  Batra
       Oct 26 (Reuters) - 
    Canada stocks were trading flat on Thursday, as gains in
utilities offset the losses in energy stocks, while robust U.S.
GDP data defied dire warnings of a recession that have lingered
since 2022.
  
    At 9:56 a.m. ET (1356 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was down 7.14 points, or
0.04%, at 18,940.71.
    Utilities  .GSPTTUT  led gains among sectors, boosted by a
nearly 3% rise in energy infrastructure company Canadian
Utilities'  CU.TO  stock on better-than-expected earnings in the
third quarter. 
    Heavyweight energy index  .SPTTEN  dropped 1.3% as oil
prices fell by over 2% after a rise in U.S. crude stockpiles
signalled waning demand.  O/R 
    The materials sector  .GSPTTMT , which includes precious and
base metals miners and fertilizer companies, fell 1.0% after
copper prices fell 0.2%.  MET/L 
    However, gold prices clawed back towards last week's
five-month peak, undeterred by a stronger U.S. dollar and bond
yields amid the Middle East conflict. GOL/ 
    U.S. data showed that the world's largest economy grew at
its fastest pace in nearly two years in the third quarter, again
defying warnings of a recession.
        Neil Birrell, chief investment officer at Premier Miton
Diversified Growth Funds, Premier Miton Investors, said, "The
U.S. economy is flying high. The data we are seeing will be
giving the Fed plenty to think about when they meet." 
    "We have a strong economy, inflation that is moderating, a
decent jobs market and a consumer sector that is still spending.
What will the Fed make of that? It points to 'higher for longer'
being the outcome," Birrell added. 
    Bank of Canada Governor Tiff Macklem told the Canadian
Broadcasting Corporation that the central bank may not have to
raise interest rates further if inflation cools in line with its
expectations. 
        Separately, Canadian factory sales most likely fell 0.1%
in September from a month, primarily due to decreases in the
primary metal, chemical and transportation equipment subsectors,
Statistics Canada said in a flash estimate.
            

 (Reporting by Shubham Batra in Bengaluru; Editing by Tasim
Zahid)
 ((Shubham.Batra@thomsonreuters.com;))