An improving global economic recovery is boosting confidence and support for equity markets.
Yet inflationary pressures are starting to emerge that are stoking investor fears of an earlier-than-expected withdrawal of monetary policy support. So those two forces are offsetting each other and creating more tight trading conditions within the equity space, she said in an interview.
A sharp acceleration of inflation in May could fuel elevated uncertainty and volatility as investors would interpret that as potentially prompting the central bank to step in and rein in its accommodative policies. So that s the risk right now in the market and that s why I think you re seeing sort of this sideways trading.
TORONTO — A good showing from the energy sector continues to buoy Canada s main stock index and the Canadian dollar, with one analyst saying investors can expect strong performances from the sector . . .
S&P/TSX composite briefly cracks 20,000-point mark for first time on energy gains
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A street sign along Bay Street in Toronto s financial district is shown on Tuesday, January 12, 2021. THE CANADIAN PRESS/Nathan Denette
TORONTO – The S&P/TSX composite index briefly cracked the 20,000-point level for the first time on a surge in the key energy sector after OPEC gave an optimistic outlook for global demand.
“I think that’s really the driving force behind what’s happening in the market today,” said Mike Archibald, vice-president and portfolio manager with AGF Investments Inc.