By Ketki Saxena
Investing.com --At the close in Toronto, the S&P/TSX Composite Index was at 21,855.70 points, or up 0.08% in the day’s trading.
The rise in yields today pressured growth stocks including tech and healthcare and supported financials. Canadian financials were also buoyed by the BoC’s rate hike and supported by U.S. bank stocks, which climbed today after mixed earnings. Canadian yields resumed upwards after declining for the last two days, tracking U.S. yields higher, and remaining supported by the BoC’s rate hike yesterday.
Yields on the Government of Canada’s benchmark 10-year bond were at 2.792%, while yields on the 5-year treasury were at 2.668%.
The energy index also helped the TSX higher, as oil reversed gains from earlier in the day, following news that the European Union might phase in a ban on Russian oil imports. As of 4:00 p.m ET, Crude was trading at 106.22/barrel, or 1.89% higher in the day’s trading, while Brent was at $111.22 a barrel, or up 2.24% so far today.
Canadian Industrials also helped the TSX close in the green, rallying on strong indicators of economic growth from the Bank of Canada yesterday.
In New York, the S&P500 was down 1.22%, the DJIA was down 0.33%, and the Nasdaq was 2.14% lower at the close, as rising treasuries hurt equities, particularly growth stocks.
Yields on the benchmark 10-year U.S. Treasury rose to 2.828% today, as investors digested economic data, including robust retail sales and inflationary import prices that appeared to reinforce the likelihood of a 50 basis point hike by the Fed in May.