TORONTO – North American markets settled down and were trading in a relatively narrow range Friday after a wild week that took investors on a roller-coaster of drops and advances largely linked to a slowing Chinese economy.
At mid-afternoon, Toronto’s S&P/TSX index was up 72.44 points at 13,839.11, its fourth consecutive rise after a six-day slide in which Canada’s main market lost more than 1,200 points, including a 420-point drop on Monday alone.
New York markets were mixed, with the Dow Jones Industrial average down 47.04 points at 16,607.73 after more than a week of gyrations.
In that period, the index shed 1,900 points, before recouping almost 1,000 points in a two-day span, including a 619-point gain Wednesday that was its third-largest of all time and the biggest since October 2008.
READ MORE: TSX, U.S. stock markets open lower as rally fizzles
The broader S&P 500 was off 3.28 points at 1,984.38 while the tech-heavy Nasdaq rose 3.04 points to 4,815.75.
“People are taking a little bit of a pause,” said Paul Springmeyer, senior portfolio manager at the Private Client Reserve at U.S. Bank. “We’re finally winding down here where maybe we’re seeing more rational behaviour.”
On commodity markets, benchmark October crude oil contract rose $2.91 to US$45.47 a barrel, while October natural gas was up five cents at US$2.71 per thousand cubic feet and December gold was up $10.30 at US$1,132,90 an ounce.
The Canadian dollar was down 0.01 of a cent at 75.64 cents U.S. after having hit an 11-year low of 74.93 cents U.S. earlier in the week.
A surge on China’s main market along with a Commerce Department report showing U.S. economic growth was much stronger than estimated, adding to a bullish sentiment.
READ MORE: Lower gas prices about to make a U-turn across Canada, expert says
The rebound on Shanghai composite index continued Friday, rising 4.8 per cent on top of a 5.3 per cent advance Thursday, its first increase in six days. During the previous five days, it had shed nearly 23 per cent.
In economic news, there were mixed messages on consumer spending, which makes up some 70 per cent of the U.S. economy.
The Commerce Department reported Friday that consumers increased their spending 0.3 per cent in July, as wages and salaries made their biggest jump in eight months.
Meanwhile, the University of Michigan’s latest consumer sentiment index fell to 91.9 in August from 93.1 in July, although the survey also found that Americans remain confident about the U.S. economy and their personal finances.
Comments