National Bank of Canada : Wednesday January 25, 2023

Market Review

January 25, 2023

EQUITY INDICES	LAST	CHANGE	%CHG	52 WK-HIGH	52 WK-LOW	YTD
DOW JONES INDUSTRIAL AVERAGE	33,743.84	9.88	0.03%	35824.28	28660.94	1.80%
S&P 500	4,016.22	-0.73	-0.02%	4637.30	3491.58	4.60%
NASDAQ COMPOSITE	11,313.36	-20.92	-0.18%	14646.90	10088.83	8.09%
S&P/TSX COMPOSITE	20,599.60	-29.95	-0.15%	22213.07	17873.18	6.27%
STOXX EUROPE 50	3,860.98	-3.59	-0.09%	3931.36	3279.47	5.73%
FTSE 100	7,744.87	-12.49	-0.16%	7875.58	6707.62	3.93%
DAX PERFORMANCE-INDEX TR	15,081.64	-11.47	-0.08%	15736.52	11862.84	8.32%
CAC40	7,043.88	-6.60	-0.09%	7169.63	5628.42	8.81%
Nikkei 225 Index	27,395.01	95.82	0.35%	29222.77	24681.74	4.98%
HANG SENG INDEX	22,044.65	393.67	1.82%	25050.59	14597.31	11.44%
Shanghai SE Composite Index	3,264.81	24.53	0.76%	3547.00	2863.65	5.68%

Market Review

Bank of Canada raises rates, likely to pause for now

Markets were soft on Wednesday following the latest batch of corporate earnings raised concerns that some of the largest U.S. companies are struggling as rates rise and recession fears grow. Investors are bracing for more high-profile corporate earnings this week as fears of a recession persist, with Tesla and IBM among the companies slated to post numbers after the bell. So far, more than 19% of S&P 500 companies have reported fourth-quarter earnings, with 68% of them posting stronger-than-expected results. A growing majority of traders expect the Federal Reserve to raise interest rates by another 25 basis points in its meeting next week. They now see the terminal rate peaking at 4.91% in June, even as Fed policymakers have repeatedly backed taking rates above the 5% level.

In economic news, the Bank of Canada hiked its benchmark overnight interest rate by 25 basis points to 4.5%, its highest level in 15 years, and said it would likely pause to measure the cumulative effect of previous increases. The move was in line with expectations from a poll of economists. The central bank has raised rates at a record pace of 425 basis points in 10 months to tame inflation, which peaked at 8.1% last summer and slowed to 6.3% in December, still more than three times the bank's 2% target. A separate report showed Canadian factory sales most likely fell 1.8% in December from November, largely driven by decreases in the petroleum and coal product, wood product and primary metal industries. Overseas, German business morale brightened in January as Europe's largest economy started the new year with easing inflation and an improved outlook. The Ifo institute said its business climate index rose to 90.2, in line with consensus according to a poll of analysts and up from a reading of 88.6 in December.

In corporate news, Boeing C losses widened for 2022 on weakness in its defense unit but the U.S. planemaker reported its first yearly positive cash flow since 2018 on stronger commercial airplane deliveries. AT&T reported more subscriber additions in the fourth quarter than expected, as aggressive promotions during the holiday season helped it attract more customers that were looking to upgrade their devices and internet plans. Microsoft results showed some strength in the face of a weak economy, buttressed by a cloud business that hit Wall Street targets for the end of 2022, but it may miss expectations in the current quarter. Abbott Laboratories reported lower-than-expected medical device sales for the fourth quarter as COVID-19 curbs in China and supply-chain

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S&P/TSX: LEADERS	LAST	CHANGE	%CHG
Shopify Inc	$63.34	$6.25	10.95%
Silvercrest Metals Inc	$9.65	$0.73	8.18%
Fortuna Silver Mines Inc	$5.52	$0.39	7.60%
Centerra Gold Inc	$8.70	$0.40	4.82%
Endeavour Silver Corp	$5.07	$0.23	4.75%

S&P/TSX: LAGGARDS	LAST	CHANGE	%CHG
Advantage Energy Ltd	$8.39	-$0.47	-5.30%
Canadian National Railway Co	$158.17	-$7.74	-4.67%
Birchcliff Energy Ltd	$8.86	-$0.35	-3.80%
Canadian Pacific Railway Ltd	$102.96	-$3.98	-3.72%
Converge Technology Solutions Corp	$5.39	-$0.19	-3.41%

S&P/TSX INDUSTRY	LAST	CHANGE	%CHG	YTD
ENERGY	245.77	-2.72	-1.09%	1.14%
MATERIALS	365.05	3.83	1.06%	11.40%
UTILITIES	310.21	-1.54	-0.49%	5.10%
FINANCIALS	374.21	0.25	0.07%	6.30%
INDUSTRIALS	391.75	-8.41	-2.10%	2.71%
HEALTH CARE	22.44	0.00	0.00%	15.55%
CONS. DISCRETION.	267.79	0.09	0.03%	6.25%
CONS. STAPLES	844.74	-0.08	-0.01%	2.63%
INFO TECH.	154.75	2.81	1.85%	13.45%
COMMUNICATION SVS	194.98	0.28	0.14%	4.80%
REAL ESTATE	329.20	-0.23	-0.07%	9.41%

GOVERNMENT BONDS	2YR	5YR	10YR	30YR
CANADA (YLD%)	3.58%	2.90%	2.80%	2.92%
U.S. (YLD%)	4.13%	3.55%	3.45%	3.60%
COMMODITIES/ FX	LAST	CHANGE	%CHG	YTD
CRUDE OIL WTI	$80.41	$0.28	0.35%	0.19%
NATURAL GAS	$3.01	-$0.25	-7.70%	-32.88%
GOLD	$1,939.80	$5.90	0.31%	6.60%
COPPER	$4.21	-$0.03	-0.73%	10.62%
CAD / USD	$0.7468	-$0.0009	-0.12%	1.22%
CAD / EUR	€0.6840	-€0.0031	-0.45%	-0.75%
USD / EUR	€0.9158	-€0.0031	-0.34%	-1.96%
USD / JPY	¥129.58	-¥0.57	-0.44%	-1.17%

Source: Refinitiv

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2. National Bank of Canada is a public company listed on Canadian stock exchanges.
3. National Bank Financial may act as financial advisor, fiscal agent or underwriter for certain companies mentioned herein and may receive remuneration for its services.
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