AUS
NZ
UK
CA
USA
IND
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The global equity markets nosedived on Wednesday with all major indices across North America, Europe and Asia plummeting to unexpected lows.
The Canadian equities moved down after the United States equity indices witnessed biggest single-day losses since October 2020. The Dow Jones slipped approximately 634 points or 2.05% to 30,303.17. The S&P 500 index doffed about 99 points or 2.57% to 3,750.77 while Nasdaq lost 356 points or 2.61% to 13,270.60.
The S&P/TSX Composite, the largest equity index for major companies in terms of market capitalization listed on the Canadian bourse, plummeted approximately 355 points or 2% to 17,424.43. This was largest single-day decline since September 23, 2020. The index is now approximately 3% off from its year’s peak level of 18,058.61 registered on January 08, 2020.
S&P/TSX Composite 5-day Price Chart (as on January 27th, 2021). Source: EODHD/Others (Thomson Reuters)
Ten out of 11 constituent sectors of the TSX Composite Index traded in red, with Basic Materials plunging 3.5%, followed by Industrials and Consumer Cyclicals down 2.8% and 2.6%, respectively. Healthcare sector was the only constituent sector of TSX Composite that settled in green and up 1.09%.
From the volume standpoint, BlackBerry, Toronto-Dominion Bank, and Suncor Energy Inc were the most active stocks within the TSX Composite basket.
BlackBerry Ltd further nudged by 32.4% on Wednesday and featured as the top performing stock on the TSX Composite Index, followed by Canopy Growth Corp up 7.4% and Canada Goose Holdings Inc up 6.3% respectively and these three stocks featured as top performers on the TSX Composite Index.
BlackBerry shares feature a price return of 95% in the past five trading sessions and has surged over 270% in a month over period. Its year-over-year price return is 273%.
On the laggard side, Aurinia Pharmaceuticals Inc featured as worst performing stock in Wednesday’s trading and declined 8.1%. However, the stock gained 10.9% in the last five intraday trading sessions. Ballard Power Systems Inc and MAG Silver Corp were also among the top laggards on the TSX Composite declined 7.1% and 7.1% respectively.
Commodity Space*
America Crude oil benchmark WTI Crude settled in positive zone, up 0.46% to $52.85/bbl. WTI Crude prices have moved approximately 9.19% in YTD basis. However, International oil benchmark The Brent Crude Oil futures ended in negative territory, declined 0.18% to $55.12/bbl.
Copper prices were down by 1.71% to $3.55/pound. Highest single-day loss since September 10, 2020.
Gold Futures were down 0.32% to $1,844.90/oz. Moreover, gold futures contracted for the fifth consecutive day.
Forex and Money Market*
The loonie weakened against its US counterpart, with CAD/USD traded 0.83% lower at 0.7811.
US Dollar Index traded 0.55% higher against the basket of majors at 90.64.
Yield on the Canadian 10-Year Government Bonds increased 0.62% to 0.818%. The US 10-Year Treasury Bond Yield slipped by 1.97% to 1.013%, respectively.
S&P/TSX Composite Technical Overviews*
The index traded below its crucial immediate and short-term support levels of 5-day, 10-day, 20-day, 30-day, and 50-day exponential moving averages (EMAs). The 14-day RSI is hovering near the oversold territory at 37.
The index also closed below its 5-day, 10-day, 20-day and 50-day simple moving average (SMA).
The moving average convergence divergence is down and hovering below the nine-day SMA signal line
The difference between 12-day EMA and 26-day EMA being negative.
*All details after markets close on January 27, 2021
