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Highlights
- The S&P/TSX composite index headed back to the green zone on Tuesday, October 5.
- The spike came after the index crumbed to a nearly three-month low on Monday.
- After a selloff ricocheted through the technology sector on Monday amid concerns of a rising inflation, tech stocks rose again on Tuesday.
The S&P/TSX composite index headed back to the green zone on Tuesday, October 5, as oil prices kissing a seven-year high boosted energy stocks and a sharper yield curve stoked financial stocks.
The Toronto Stock Exchange’s main index jumped up by 131.18 points, or 0.7 per cent, to 20,183.43. The spike came after the index crumbed to a roughly three-month low the day before.
Wednesday morning, however, saw oil prices lose their shine a little.
Let’s check out some developments that can influence the markets in Canada today.
Also read: Fobi (TSXV:FOBI) surged 650% in a year! A Canadian AI stock to buy?
Tech stocks rise again
After a selloff ricocheted through the technology sector on Monday amid concerns of a rising inflation, tech stocks rose again on Tuesday as investors most likely returned to the market to buy the dip.
The TSX tech sector gained about 0.25 per cent on Tuesday.
While Canadian giant Shopify Inc (TSX:SHOP) rose by about a per cent on Tuesday, Lightspeed Commerce Inc (TSX:LSPD) closed nearly two per cent higher and fintech company Nuvei Corp (TSX:NVEI) was up over five per cent.
Image description: Nuvei Corporation (TSX:NVEI) Q2 2021 results
Oil prices fluctuate
The S&P/TSX Capped Energy Index surged by 2.81 per cent on Tuesday as oil prices rocketed to their highest level in nearly seven years after Monday’s OPEC-led panel meeting advised a slow expansion of energy supply.
Oil producer Vermilion Energy Corp (TSX:VET) saw its stocks climbed by about eight per cent on Tuesday, while fellow energy players Tourmaline Oil Corp (TSX:TOU) and Suncor Energy Inc (TSX:SU) gained nearly four per cent each.
However, on Wednesday morning, futures in the US slipped by 0.6 per cent as an important employment report put pressure on crude prices.
Also read: Which TSX energy stocks to buy as oil hits highest price since 2014?
Gold stocks could shrink
Gold prices ended their three-day gaining streak on Tuesday as treasury yields bulked up in the wake of the latest data boosted positivity for economic recovery in the US.
Gold contract for December slipped by US$ 6.7 to US$ 1,760.9 an ounce, resulting in gold stocks putting a pressure on the larger market.
The December copper contract also shrank by 4.6 cents to US$ 4.19 per pound, though the base materials sector managed to rise by 0.5 per cent at the end of the day.
Latest data on Canada’s Indigenous population, retail prices, etc
Statistics Canada is scheduled to release its latest estimates of the Indigenous populations and households in Canada, for the years between 2016 and 2041.
The agency will also be reporting the average retail price data for certain products for the month of August 2021 on Tuesday, which will be categorized by provinces.
Bottom line
Fluctuating oil prices are likely to impact the Canadian markets on Wednesday, while tech stocks in the wake of a selloff could also be one to watch.
