Weak markets, but Canadian inflation falls
Bay and Wall streets backed away from recent record highs on Tuesday, finishing mildly in the red. However, annual inflation in Canada for September came in at 1.6%, which was below expectations and returned to its lowest level since February 2021. Increasingly, the street expects the Bank of Canada to cut interest rates on October 23, perhaps by 50 basis points. The TSX declined 0.13% during the session, though most sectors were positive, led by healthcare, utilities and real estate. However, they were outweighed by major losses in energy after Israel announced it would not bomb Iran’s oil assets.
This sent WTI plunging 4% to trade below US$71 as CNQ closed -5.72% and Baytex -6.31%. Meanwhile, Bausch Health rallied 5.66%, Brookfield Business Partners 4.64% and Orla Mining 4.36%. Gold climbed 0.5% to US$2,661 to remain at elevated levels.
On Wall Street, the S&P closed -0.76%, the Dow -0.75% and the Nasdaq -1.01%. ASML pre-reported weak earnings and its shares tanked 16.26% but also brought down Nvidia by 4.69% from record highs. Elsewhere, Walgreens soared 15.78% after announcing major layoffs, Schwab jumped 6.1% after beating earnings and Carnival rallied 6.63%. The U.S. 10-year yield slipped to 4.036% as Bitcoin added 1% to US$66,600.
🛢 Canadian Natural Rsrcs (CNQ-T) -5.72%
🛢Baytex Energy Corp (BTE-T) -6.31%
👨⚕️ Bausch Health Companies Inc. (BHC-T) +5.66%
🏛 Brookfield Business Partners LP (BBU.UN-T) +4.64%
⛏ Orla Mining (OLA-T) +4.36%
🧬 ASML Holding (ASML-Q) -16.26%
💾 NVIDIA Corporation (NVDA-Q) -4.69%
💊 Walgreen Boots Alliance (WBA-Q) +15.78%
🏛 Charles Schwab Corp (SCHW-N) +6.1%
🚢 Carnival Corp. (CCL-N) +6.63%
🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +1%
