TSX up as energy falls 2.2% amid looming inflation, loonie down

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TSX up as energy falls 2.2% amid looming inflation, loonie down

 TSX up as energy falls 2.2% amid looming inflation, loonie down
Image source: Copyright © 2021 Kalkine Media

Canada’s TSX Composite Index rose for the second straight day Wednesday, October 6, marginal though it was. Industrials, IT and utilities were up but all other sectors were down including energy leading to a 0.04 per cent (8.23 points) rise to 20,191.66.

Energy fell 2.24 percent after record oil prices and some analysts believe investors’ concern of looming inflation caused by high energy prices could pressure central banks into raising interest rates. Generally, high oil prices tend to raise demand for natural gas too and cause a rise in those prices as consumers look for a substitute. This, especially so in the colder months.

Tech was up over one per cent and healthcare fell 1.24 per cent.

One-year price chart (as on October 6). Analysis by Kalkine Group

Volume active

Toronto-Dominion Bank was the most actively traded stock where close to 17.5 million shares exchanged hands, handing them a hat-trick as TSX’s most traded stock. This was followed by Bombardier Inc. where nearly 15.8 million exchanged hands, and the Bank of Nova Scotia saw 10.5 million shares exchanging hands.

Movers and laggards

Wall Street update

Wall Street seemed lively after Senate Minority Leader Mitch McConnell indicated a possibility of offering the Democrats an increase in the debt ceiling till December. Indices closed in the green after trading rose in the afternoon and held steady till close.

The Dow Jones Industrial Average rose 102.32 points or 0.3 per cent to 34,416.99, and the S&P 500 17.83 points or 0.41 per cent up to 4,363.55, and the Nasdaq gained 68.08 points or 0.47 per cent to 14,501.91.

Commodity update

Gold traded at US$ 1,761.80 up 0.05 per cent. Brent oil was down 1.79 per cent to US$ 81.08/bbl, while crude oil fell 1.9 per cent to US$ 77.43/bbl.

Currency news

The Canadian dollar stood lower against the U.S. dollar on October 6, while USD/CAD ended in the green at 1.2587, up 0.05 per cent.

The U.S. Dollar Index was stronger against the basket of major currencies on Wednesday and ended at 94.23, up 0.27 per cent.

Money market

The U.S. 10-year bond yield did not see change on Wednesday’s trade and ended at 1.528.

The Canada 10-year bond yield fell 1.57 per cent on October 6 and ended at 1.509.

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