The TSX lost 0.17 per cent today, weighed down by healthcare and industrial stocks.

Healthcare stocks fell by 1.7 per cent, led by losses from Tilray Brands, Canopy Growth and Cronos Group.

Industrials shed 0.95 per cent on darkening sentiment for 2023, including a mild recession in the first half of the year as rate hikes settle into the broad-based economy.

Losses were offset by materials stocks, which gained 0.77 per cent tracking gold’s 1.44 per cent jump. The metal’s price has added approximately 5 per cent in 2023, on pace with global equities.

The index also reacted to weak U.S. economic data this week, including declines in consumer demand, business investment, producer prices, retail sales, business equipment production and factory output. The quarter is the weakest for U.S. manufacturing since the pandemic began.

Predictably, U.S. stocks reacted poorly to this new information, closing with a loss of 1.04 per cent.

Canadian investors will be paying close attention to fresh retail sales data tomorrow morning for signs of economic activity ahead.

December’s 6.3 per cent inflation reading, 0.1 per cent slower than consensus, saw 5 out of 8 components of the CPI rise at a slower MoM clip in December.

Canadian home prices also fell for a sixth-straight month in December, according to the Teranet–National Bank National Composite House Price Index. The data also showed that home prices did not rise YoY for the first time since the 2008 financial crisis.

While a diversity of analysts see a 25-basis-point hike from the Bank of Canada (BoC) on January 25th, there is a growing notion that it will pause immediately after to monitor how higher borrowing costs are affecting production and demand.

The European Central Bank is taking a more hardliner stance than the BoC, with President Christine Lagarde vowing unwavering efforts to cool price growth to sustainable levels during a panel in Davos earlier today. This is in spite of E.U. inflation falling 0.4 per cent MoM in December to 9.2 per cent YoY, headlined by plunging natural gas costs. As opposed to a recession, Lagarde sees a small contraction over the short term.

Future global monetary policy will depend on a variety of idiosyncratic factors, including the Chinese reopening after its Zero COVID policy, the international community’s interventions in the Russia-Ukraine war, and the cascading effects of these on global trade.

Oil is up over 4 per cent over the past week thanks to accelerating Chinese crude purchases, among them recent transactions with the UAE. Gains were capped by a 7.6-million-barrel gain in commercial U.S. stockpiles and national strikes in France that include refineries.

A barrel of WTI stood at US$80.75 at market close.

Year to date, the TSX is up by 4.68 per cent, U.S. stocks have gained 0.96 per cent, while Developed International and Emerging Markets have gained 4.60 and 5.51 per cent, respectively.

Market movers

Motivated by declining but elevated inflation, as well as the gloomy prospects for stocks in a potential economic slowdown, TMH readers have been keen on the upside and value-retention potential of companies in the mineral resource sector. Stories receiving the most attention in this sector include:

Colossus Resources’ (CLUS) channel sampling results from inaugural prospecting on its Master Copper Project.

Romios Gold’s (RG) high-grade gold vein discovery on its North West claim block in B.C.’s Golden Triangle.

Aya Gold & Silver’s (AYA) bought-deal offering of common shares for gross proceeds of $70,001,250.

Other notable capital raises since Tuesday’s market summary feature Atlas Salt and DLP Resources.

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