Top 5 events to watch out in Canadian markets on September 28

Highlights 

  • After three straight weeks of decline, the S&P/TSX composite index started this week on a happier note on Monday, September 27.
  • This happened as crude oil prices soared to a near three-month high and natural gas prices jumped to their highest point in nearly eight years.
  • Meanwhile, China’s call to ban all cryptocurrencies in the country, which hit global markets hard last week, could continue to exert pressure on crypto stocks on Tuesday.

After three straight weeks of decline, the S&P/TSX composite index started this week on a happier note as crude oil prices soared to a near three-month high and natural gas prices jumped to their highest point in nearly eight years.

Powered by energy stocks, Canada's benchmark stock index catapulted to an intraday high of 20,503.83 on Monday, September 27, before settling 60.76 points higher at 20,463.42.

Now, what all do we have to look forward to on Tuesday, September 28? Let’s find out.

Energy stocks rolling higher

The TSX energy sector jumped by 3.14 per cent on Monday, with stocks of Enerplus Corp (TSX:ERF) leading the party with a 10.23 per cent surge. Oil producer Crescent Point Energy Corp (TSX:CPG) was right behind with a 10.11 per cent surge, followed by MEG Energy Corp (TSX:MEG) with a 7.63 per cent growth and Whitecap Resources Inc (TSX:WCP) with that of 7.14 per cent.

With easing COVID-19 restrictions giving way to a rise in global oil demand amid a supply crunch, oil prices are expected to rise further. Thus, oil and gas stocks would be something to keep a close eye on as the week rolls by.

Knock-on effect from China’s crypto ban on Canadian crypto stock

While major crypto coins like Bitcoin and Ether remained in the red zone on Monday, Canadian digital currency miner Hive Blockchain (TSXV:HIVE) saw its stocks slip by 1.37 per cent. However, miner Hut 8 Mining (TSX:HUT) and Bitcoin ETF (TSX:EBIT) noted a price jump of 3.19 per cent and 1.37 per cent, respectively, on Monday.

Nonetheless, China’s call to ban all cryptocurrencies in the country, which hit global markets hard last week, could continue to exert pressure on crypto stocks on Tuesday.

Also read: Can China's Evergrande crisis & crypto ban set TSX up for loss in Sept?

Continued impact of China’s Evergrande crisis

Real estate giant China Evergrande Group’s US$ ~300 billion debt load continues to be a burden on financial markets around the world.

While Evergrande is said to have already missed a payment deadline of US$ 83.5 million last Thursday, reports claim that Chinese authorities are hesitant about bailing the property developer out.

Some market experts believe that while a direct impact may not take place, the Evergrande crisis could aggravate China’s economic slowdown further, which, in turn, could go on to impact global economy to a certain extent.

Also read: Can Evergrande’s great fall in China impact Canadian stock markets?

How China’s Evergrande crisis and crypto ban impacted TSX

Canada’s latest employment and job related statistics

Data agency Statistics Canada is set to release the payroll employment, earnings and hours, and job vacancies stats for the month of July 2021 on September 28.

To rewind a little, Canada’s payroll employment has jumped by 214,800, or 1.3 per cent in June, while average weekly earnings fell.

StatCan had pointed that with COVID-19 related health measures being further loosened in some part of the country, July’s employment and payrolls data may reflect improvement in sectors and subsectors that could have benefited from this easing of restrictions.

Key TSX earnings releases for September 28, 2021

Water treatment company H2O Innovation (TSXV:HEO) is scheduled to release its 2021 fourth quarter and full fiscal year earnings report on Tuesday, September 28, at approximately 8:00AM EST.

Canadian drilling enterprise Orbit Garant Drilling Inc (TSX:OGD) is also set to reveal its latest financial results on Tuesday.

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