Equities in Canada’s largest centre wavered through the initial session of 2023, but managed to hang onto gains by the close, mostly on the strength of resource stocks.
The TSX gained 56.45 points to close Tuesday at 19,441.37.
The Canadian dollar capsized 0.61 cents at 73.14 cents U.S.
Gold stocks led the charge, with Equinox Gold at the helm, up 43 cents, or 9.7%, to $4.86, while Kinross Gold flew 27 cents, or 3.6%.
In other metals, K92 Mining surged 39 cents, or 5.1%, to $8.06, while Pan American Silver progressed $1.33, or 6%, to $23.43.
In utilities, Algonquin Power & Utilities grabbed 39 cents, or 4.4%, to $9.21, while Brookfield Renewable took on $1.20, or 3.5%, to $35.48.
Energy threatened to let the side down, however, with Vermilion Energy stumbling $3.21, or 13.4%, to $20.76, while Birchcliff Energy lost $1.18, or 12.5%, to $8.25.
On the economic calendar, Markit Canada’s manufacturing PMI for December dipped to 56.5 from November’s 57.2.
The TSX Venture Exchange faltered 3.11 points, to close at 567.16.
All but one of the 12 subgroups gained ground by day’s end Tuesday, with gold ahead 4.5%, materials up 2.1%, and utility stocks advancing 1.9%.
Only energy missed the party, sliding 5.8%.
Stocks closed lower Tuesday, giving up earlier gains, as concerns such as rising rates and high inflation that knocked the market down last year continued to trouble investors in the new year.
The Dow Jones Industrials fell 10.88 points short of breakeven to finish Tuesday at 33,136.37, as shares of Boeing bolstered losses.
The S&P 500 skidded 15.36 points at 3,824.14
The NASDAQ Composite Index slid 79.5 points to 10,386.99.
The major averages closed 2022 with their worst annual losses since 2008, snapping a three-year win streak. The Dow ended the year down about 8.8%, and 10.3% off its 52-week high. The S&P 500 lost 19.4% for the year and sits more than 20% below its record high. The tech-heavy NASDAQ tumbled 33.1% last year.
Of course, there may be brighter days ahead. History also shows the U.S. stock market tends to rebound after down years. In fact, the S&P 500 has, on average, rebounded by 15% in the next year following a year where it lost more than 1%.
Shares of Tesla and Apple both slipped, weighing on the broader market and carrying forward a main theme from 2022, when the technology sector was hit hard as the Federal Reserve raised rates to fight inflation. Tesla fell more than 12.2% following disappointing fourth quarter deliveries and Apple shed more than 3.7% on reports that it will cut production due to weak demand.
The theme may continue in 2023 as the central bank is poised to continue to hike interest rates in the coming months, stoking fears that the U.S. economy may fall into a recession.
Prices for the 10-year Treasury gained ground, lowering yields to 3.77% from Friday’s 3.88%. Treasury prices and yields move in opposite directions
Oil prices dropped $3.12 to $77.14 U.S. a barrel.
Gold prices heightened $17.90 to $1,844.10 U.S. an ounce.