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The TSX Composite Index finally ended a day in the green Tuesday, November 22, after four days of losses, as the energy sector gained nearly four per cent. Last week, President Joe Biden asked China, Japan and India to tap into their gas reserves to lower prices, and on Tuesday, he announced that the US will be doing so itself considering the upcoming holiday season as many Americans drive home.
Also, with the US president renominating Jerome Powell to head the Fed, Canada’s financial sector saw a gain of 0.52 per cent, its biggest in three weeks. The base metals sector was up about two per cent, and after yesterday’s fall of over three per cent, the technology sector was again down by 1.63 per cent to land the index at 21,453.77, 33.00 points or 0.15 per cent better than its previous close.
One-year price chart (November 23). Analysis by Kalkine Group
Energy stocks dominate volume actives
As mentioned, energy saw a good day and four of the top six most traded stocks where energy companies including big players like Suncor Energy Inc, Cenovus Energy Corp, which gained over six per cent, Enbridge Inc, and Crescent Point Energy Corp that gained over 6.5 per cent. All of the above saw gains.
Suncor topped the volume list with over 24 million shares being traded and was up 2.84 per cent. It was followed by Harte Gold Corp with 15.84 million shares exchanging hands. Manulife Financial Corporation was in third place with 12.65 million shares switching ownership.
Movers and laggards
Wall Street update
On Wall Street, trade was choppy rising and falling multiple times during the day. It will close for Thanksgiving Thursday, November 25, and have shortened hours of trade for Black Friday as we enter the holiday spending season.
The Nasdaq benchmark index was again down 0.5 percent, 79.62 points to 15,775.14. The Dow gained 0.55 per cent, 194.55 points to 35,813.8, and the S&P 500 was in the green 0.17 per cent, up 7.76 points to 4,690.7.
Gold in free fall as oil prices recover
Gold may widely be considered a hedge against inflation but it again sank 1.25 per cent to US$ 1,783.80. Gold has lost 4.7 per cent in the last four trading days.
Brent oil was again up for the second day in a row as it gained 3.27 per cent, back over the US$ 80 mark to US$ 82.31/bbl. It has gained 4.3 per cent in two days while crude oil rose by 2.28 per cent, up 3.13 per cent in two days, to US$ 78.50/bbl.
Loonie up
The loonie gained 0.27 per cent Tuesday while USD/CAD ended down at 1.2664. The US Dollar Index fell slightly, by 0.06 per cent, against the basket of major currencies and ended at 96.49.
Bond market surges
As expected, the bond market was likely to see more movement with impending interest rate hikes as Mr. Powell is given a second term. The US 10-year bond yield gained again 2.45 per cent Tuesday to 1.676 -- it has grown over eight per cent in three days -- while the Canada 10-year bond yield saw a 2.44 per cent rise to 1.807, up 8.64 per cent in the last two days alone.
