TSX & loonie gain 3rd day in a row, energy up 2.8%

Canada’s TSX Composite Index rallied for the third day on Thursday, September 23, as the market continued to digest the Fed’s tapering signals and concerns over China’s property developer Evergrande eased since the debt crisis could be restrained.

Furthermore, rising oil prices lifted the TSX Composite Index’s heavy-weight energy sector by 2.8 per cent.  The rising Treasury yields drove the financial sector up one percent. Hence, the TSX composite index continued in the green zone up 60.44 points or 0.3 per cent to settle at 20,461.93

One-year price chart (as on September 23). Analysis by Kalkine Group

Volume active

Bombardier Inc. was the most actively traded stock where 22.71 million exchanged hands, followed by TC Energy Corp. where 19.15 million exchanged hands, and Cenovus Energy Inc. with 10.52 million shares exchanging hands.

Movers and laggards

Wall Street update

Stocks edged higher strongly on Thursday, adding to the previous session's robust gains. The gains on Wall Street coincided with a reduction in investor fears over Evergrande after the Chinese property developer struck an agreement with mainland bondholders.

The Dow rose 506.50 points, or 1.5 per cent to 34,764.82, and the S&P 500 gained 53.34 points, or 1.2 percent to 4,448.98, while the Nasdaq gained 155.40 points, or 1 per cent, to 15,052.24.

Commodity update

Because of the surge in yields, gold declined 1.63 per cent to US$ 1,749.80. Brent oil rose 1.39 per cent to US$ 77.25/bbl, while crude oil rose 1.48% to US$ 73.30/bbl, putting it near two-month highs.

Currency news

The Canadian Dollar stood higher against the U.S. Dollar on Thursday, while USD/CAD closed at 1.2655, sliding 0.90%.

The U.S. Dollar index was down against the basket of major currencies on September 23, and ended in the red at 93.10, losing 0.38 per cent.

Money market:

The U.S. 10-year bond yield soared 10.07 per cent September 23, and ended in the green at 1.435. The surge was primarily due to positive investor sentiment on account of expected economic recovery.

The Canada 10-year bond yield also gained strong momentum on Thursday’s trade and closed at 1.341, jumping 10.46%.

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