Friday , March 31 2023

North American markets are rising after the US mid-term elections


TORONTO – North American markets closed higher as healthcare stocks grew on both sides of the border Wednesday after the US mid-term elections.

In Canada, the sector gained almost five per cent, as many cannabis stocks rose after the US Attorney General Jeff Sessions's resignation was released. Aurora Cannabis closed nearly nine percent, Canopy Growth Corp. 8% and Aphria Inc. 3.7%.

South of the border, Tilray Inc. won over 30% of the Nasdaq.

The US health sector was also strengthened as the divided government noted that the Republican is trying to abolish Obamacare will stop now, says Michael Currie, Vice President and Investment Advisor at TD Wealth.

"A democratic victory means there is very little chance for Republicans to abolish Obamacare and that's good news for insurers," he said in an interview.

Dow Jones's largest earners in the industry were major insurers such as Anthem Inc. and Humana Inc., along with the drug giants Merck and Pfizer.

"Just the fact that this is a separate House or a stalemate means that it is unlikely that any of the parties will make any major efforts to fight big pharmaceutical companies in relation to drug prices."

In New York, the average Dow Jones was 545.29 units at 26,180.30. The S & P 500 rose by 58.44 points to 2,813.89, while the Nasdaq compound rose by 194.79 points to 7,570.75

The results of the elections were in line with market expectations and avoided the Democrats' worst case scenario to gain control over both Congressional houses.

"There is a consensus that Trump's policies are conducive to buying," Currie said.

The fear of investors was that a democratic wave would lead to the abolition of tax cuts that were very favorable to US stocks and the repetition of regulations.

"By virtually abolishing some of the policies for growth".

Technological inventories also gained, as they experienced the largest reductions during the recent withdrawal.

The composite S & P / TSX index closed 76.72 points at 15,369.43.

The increase in Canada's stock market index was less than expected, partly because the health and technology sectors are a very small part of the exchange.

"It's frustrating to see that even now we have just one-third of the growth we've seen in New York and there really were no big weak areas to drag Canada down as long as I was going, but I would have expected to see at least higher than that . "

The Canadian dollar traded an average of 76.36 US cents compared to an average of 76.16 US cents on Tuesday.

Gross contract in December declined for an eighth day, down 54 cents to US $ 61.67 per barrel, and the December gas contract remained unchanged at US $ 3.55 per mmBTU.

Gross crude was raised on Wednesday with reports that Saudi Arabia is planning to increase production but fell after US President Donald Trub said at a news conference that he wants prices to remain low.

The December gold contract rose by US $ 2.40 to $ 1.228,70. The ounce and copper contract in December rose 2.2 cents to $ 2.75 per pound.

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