Top 6 events to watch out in Canadian markets on September 29

Highlights 

• The S&P/TSX composite index slipped to its lowest level in over a week on Tuesday, September 28.
• The dip came as tech stocks bore the brunt of a selloff amid rising global bond yields.
• As oil prices dipped a little after hitting their highest point since July this year and amid the increasing supply crunch in Europe, the TSX energy sector slipped marginally.

The S&P/TSX composite index slipped to its lowest level in over a week on Tuesday, September 28, as tech stocks bore the brunt of a selloff amid rising global bond yields.

Canada’s main stock index fell 289.28 points, or 1.4 per cent, to settle at 20,174.14, its lowest closing point since September 20.

Let’s look into some of the events that could impact the financial markets in Canada today, on Wednesday, September 29.

Higher bonds yield impact stock markets

As the US 10-year yield shot up to 1.567 per cent, its highest point level since June this year, the TSX information technology sector crumble noticeably.

The S&P/TSX Capped Information Technology Index lost about 3.77 per cent on Tuesday, its biggest fall since November 2020.

Shopify Inc (TSX:SHOP), the Canadian ecommerce giant with the highest market value on the TSX, fell nearly five per cent amid the selloff as more investors leaned towards sectors that are more sensitive to the economic outlook.

Fintech company Nuvei Corporation (TSX:NVEI) on the other hand, lost more than five per cent.

If the tech selloff persists on Wednesday, tech stocks on the TSX could continue to take a beating.

Increased bond yields are known to affect the value of future cash flows, so stock prices of companies with high growth prospects could be particularly impacted.

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

Oil prices dip

As oil prices dipped a little after hitting their highest point since July this year and amid the increasing supply crunch in Europe, the TSX energy sector slipped marginally.

Despite the 0.03 per cent slip, however, the S&P/TSX Capped Energy Index represented the top performing sector on Tuesday.

If the oil prices continue to fluctuate, oil stocks could be something to watch closely.

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

Agnico Eagle and Kirkland merger

The announcement of Agnico Eagle Mines (TSX:AEM) acquiring fellow Canadian gold company Kirkland Lake Gold Ltd saw the latter’s stock plunge by nearly eight per cent on Tuesday.

Agnico stocks also fell by about 1.22 per cent, as the S&P/TSX Capped Materials Index, which comprises precious and base metals miners, slipped by 0.89 per cent.

Other TSX-listed gold producing firms such as Barrick Gold Corporation (TSX:ABX), Franco Nevada Corporation (TSX:FNV), Newmont Corporation (TSX:NGT), etc. traded in green on Tuesday.

The all-stock deal valued at C$ 13.51 billion could have further impact on Agnico and Kirkland stocks.

AGF Management Limited to Release Q3 2021 Financial Results

AGF Management Limited (TSX:AGF.B) is set to report its earnings results for the third quarter of 2021 on Wednesday, September 29, around 8AM EST.

In the second quarter ending May 31, 2021, the Canadian asset manager had posted total assets under management (AUM) and fee-earning assets of about C$ 40.8 billion, which was up from that of C$ 35.8 billion in Q2 2020.

Industrial product and raw materials data

Statistics Canada is set to release a report on the industrial product and raw materials price indexes for the month of August 2021 on Wednesday.

Last month, the national data agency said that Canada’s Industrial Product Price Index (IPPI) had fallen by 0.4 per cent on a monthly in July 2021, but increased by 15.4 per cent year-over-year (YoY).

July’s Raw Materials Price Index (RMPI), on the other hand, was up by 2.2 per cent on a monthly basis and 37.7 per cent YoY.

Chrystia Freeland to stay on as finance minister, says Trudeau

After snatching up a minority government in the 2021 snap polls earlier this month, Prime Minister Justin Trudeau has said Chrystia Freeland will continue to hold the offices of Canada’s finance minister and deputy prime minister.

He added that a new cabinet is set to be sworn in next month in October, while the legislature would be reconvening by the end of fall.

The prime minister also said mandating the COVID-19 vaccine for civil servants and workers in industries regulated by the federal government will remain a priority, along with his plans of a national childcare program and climate change.

All these factors are likely to have a notable impact on the financial markets.