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It seems like it is turning out to be a choppy week for the TSX Composite Index as it lost 64.14 points or 0.3 per cent Wednesday, November 17, as StatCan announced October’s dreaded inflation report. The 4.7 per cent year-over-year increase was the highest since February 2003 and transportation was its biggest contributor as rising oil prices led to a rise of over ten per cent hike in cost and a global shortage of semiconductor chips didn’t help.
The benchmark index is down 0.53 per cent week-to-date. Crude oil prices continued to fall and the energy sector lost 0.5 per cent Wednesday so, if you’re looking for a silver lining, that may lead to some reprieve in the medium to long-term if it sustains with regards to inflation.
Furthermore, the loonie has fallen 0.75 per cent in the last two days. The last time it was this cheap was October 1. Healthcare plummeted three per cent and industrials and IT almost one per cent to land the index at 21,653.02 points. However, it has to also be stated that the index has seen numerous record highs recently and is up nearly three per cent on a month-to-date basis.
One-year price chart (November 17). Analysis by Kalkine Group
Volume active
Manulife Financial Corporation was the most traded stock with 16.22 million shares exchanging hands. It was followed by Enbridge Inc, which ended the day in the green, with nearly 13.5 million shares exchanging hands. As the ‘Three Amigos Summit’ convenes, it will be interesting to see any development with regards to Line 5 and how the market reacts to the news. In third place was Suncor Energy Inc with 8.7 million shares exchanging hands.
Movers and laggards
Wall Street update
Wall Street was in the red Wednesday after the recent US inflation report for October said it was at a 31-year high. The main indices dipped on open, then gained a little, and by noon plummeted.
The Dow was down 211.17 points, 0.58 per cent, to 35,931.05 points, while the S&P 500 fell 12.23 points, 0.26 per cent, to 4,688.67 points and the Nasdaq was in the red by 52.28 points, or 0.33 per cent, to 15,921.57.
Gold spikes amid inflation, oil plummets
Speaking of inflation, gold rose 0.87 per cent and traded at US$ 1,870.20. Brent oil was down 2.61 per cent to US$ 80.28/bbl, while crude oil lost three per cent to US$ 78.36/bbl.
Loonie lowest since October 1
The loonie lost 0.36 per cent against the US dollar, while USD/CAD ended in the green at 1.2605. The US Dollar Index fell 0.09 per cent against the basket of major currencies Wednesday and ended at 95.83.
Money market
The US 10-year bond yield fell 3.35 per cent Wednesday to 1.585 while the Canada 10-year bond yield was down 4.83 per cent to 1.693.
