Top 4 events to follow in Canadian markets on September 30

Highlights

• The S&P/TSX composite index was able to gain back some of its losses from the previous session on Wednesday, September 29.
• At the end of the day, however, Canada’s main stock index still settled 16 points, or 0.1 per cent, lower at 20,158.14.
• The dip came as technology stocks continued to fall amid an extended selloff.

The S&P/TSX composite index was able to gain back some of its losses from the previous session on Wednesday, September 29, powered by a good performance in the energy sector.

At the end of the day, however, Canada’s main stock index still settled 16 points, or 0.1 per cent, lower at 20,158.14, which was its lowest closing point since September 20.

The dip came as technology stocks continued to fall amid an extended selloff.

Let’s look at some events that can influence the financial markets in Canada today, on Thursday, September 30.

TSX tech stock selloff could continue

The US 10-year yield hitting its highest point in over two months triggered a tech stock selloff on Tuesday, which saw many major tech companies in the US and Canada slip.

On Wednesday, as the bond yields stayed close to the record levels, tech shares continued to feel the heat, causing the S&P/TSX Capped Information Technology Index to slip by 1.79 per cent and its lowest closing point since July-end.

Canadian tech giant Shopify Inc (TSX:SHOP) lost nearly a per cent per cent on Wednesday, while Nuvei Corporation (TSX:NVEI) dipped by 1.25 per cent.

Tech startup Lightspeed Commerce Inc (TSX:LSPD), on the other hand, nosedived by nearly 12 per cent on Wednesday.

While tech stocks appeared to be rebounding on Thursday morning, these companies could be one to watch closely as a jump in bond yields can hit the stock performance of enterprises with notable growth prospects.

Also read: Top events to watch out in Canadian markets on September 29 

Oil prices fall amid supply concerns

After soaring earlier this week, oil prices slipped below the US$ 74-mark on Thursday as concerns around the impact of energy shortage on the global economy weighed heavier against the demand surge it could cause.

The market is reportedly projected to face a significant oil shortage over the coming six months, and the crunch could get more serious if rising natural gas prices impact petroleum fuels.

The S&P/TSX Capped Energy Index jumped by a little over a per cent on Wednesday, but the negative sentiment around oil supply crunch could affect TSX energy stocks on Thursday.

Canada’s white-hot housing market could be one to watch

Canada’s housing market has been a talk of the town for a minute now. Latest data from Equifax Canada Inc note that in the year ending June 30, 2021, the number of Canadians taking on their fourth or more mortgage soared 7.7 per cent, which was more than double the spike in first-time borrowers.

A recent report by the Canada Mortgage and Housing Corp (CMHC), on the other hand, pointed that the market could be heading for a sharp correction in terms of house valuations.

The report further showed that home prices and the frenzy around buy them continue to hover around record levels as mortgage rates remain low.

Keeping these factors in mind, along with the stir the whole Evergrande crisis caused in global markets, real estate sector would be one to watch closely.

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

Bombardier stocks rise

Canadian industrial giant Bombardier Inc (TSX:BBD.B) noted a 5.7 per cent jump in its stock price at opening bell on Thursday, making it the top percentage gainer on the TSX.

The spike could have been triggered by the company’s recent announcement about it bagging a US$ 534 million order for a modified version of its Challenger 350 aircraft.

Also read: Is Bombardier (TSX:BBD.B) a turnaround stock to buy before Sept ends?

Bottom line

The benchmark Canadian index headed for the green zone on Thursday morning as tech stocks improved, but as of now, it remains on track to end this month with a two per cent loss after a seven-month gain.