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Canada’s TSX Composite Index rose by 224.55 points Thursday, October 7, after the Republicans opted for bipartisanship and allowed the Democrats to raise the US debt ceiling by US$ 480 billion averting what would have been a historic delinquency.
All sectors were in the green as the index grew 1.11 per cent, clocking its highest daily gain since June 1 when it grew 1.24 per cent. Energy gained 2.38 per cent and IT 2.65 per cent. Of note, healthcare grew 1.1 per cent and base metals about 2.9 per cent.
One-year price chart (as on October 7). Analysis by Kalkine Group
Volume active
Toronto-Dominion Bank was the most actively traded stock for the fourth day in a row with 7.12 million shares exchanging hands. It was followed by Suncor Energy Inc where nearly 6.95 million shares exchanged hands, and Cenovus Energy Inc with 6.36 million shares exchanging hands.
Movers and laggards
Wall Street update
The US was in danger of being cut off from borrowing in less than two weeks from now, which essentially meant defaulting on its loans for the first time in modern history. Had the US defaulted on its debts, it would have wreaked havoc on the country’s credit rating and that could have plunged the world into a global financial crisis. Thankfully the Senate, in a 50-48 vote, approved raising the country’s debt ceiling.
Global crisis staved off, the major indices saw growth by mid-morning and held on to most of it as they only marginally dipped towards the close to end in the green.
The Dow Jones Industrial Average rose 337.95 points or 0.98 per cent to 34,754.94, and the S&P 500 36.21 points or 0.83 per cent up to 4,399.76, and the Nasdaq gained 152.11 points or 1.06 per cent to 14,654.02.
Commodity update
Gold traded at US$ 1,759.20 down 0.15 per cent. Brent oil was up 1.07 per cent to US$ 81.95/bbl, while crude oil gained 1.12 per cent to US$78.30/bbl.
Currency news
The Canadian dollar stood better against the U.S. dollar on October 7, while USD/CAD ended in the red at 1.2546, down 0.33 per cent.
The U.S. Dollar Index was slightly worse off against the basket of major currencies on Thursday and ended at 94.18, down 0.09 per cent.
Money market
The U.S. 10-year bond yield grew 3.19 per cent on Thursday’s trade and ended at 1.576.
The Canada 10-year bond yield rose 3.91 per cent on October 7 and ended at 1.568.
