By Ketki Saxena
Investing.com -- At the close in Toronto, the S&P/TSX Composite Index was at 19,258.32, up 1.03% in the day’s trading, outperforming U.S. benchmarks as the commodity-heavy Canadian index gained support from gains in crude and a rebound in copper.
After two weeks of heavy losses, crude gained support from a new round of restrictions announced at a meeting of leaders of the Group of Seven (G7). The group now proposes to cap prices on the sale and purchase of Russian oil.
Analysts note the move may well lead to retaliation from Russia, by possibly banning oil and refined product exports to G7 economies and exacerbating tight supply conditions.
Losses in crude are also being tempered by another week’s delay in the U.S. oil inventory report due to hardware failures at the Energy Information Administration’s processing systems. The data was originally expected last week.
The TSX was also supported by strength in materials metals, buoyed by a rebound in copper as the key industrial metal and a bell-weather of economic sentiment eased from last week’s 16-month low.
Canadian Investors should also note today’s announcement from Toronto Stock Exchange (TSX) CEO Loui Anastasopoulos, who believes that mining companies are set to see a “renaissance” and lead capital raisings in Canada this year, while sectors such as technology take a back seat amid market volatility.
Resource stocks were across the board the top gainers on the TSX today, inc, with Vermilion Energy (TSX:VET) Inc, rising 11.67% or 2.69 points to trade at 25.74 at the close following an upgrade from Scotiabank (TSX:BNS). HudBay Minerals Inc (TSX:HBM) added 6.92% or 0.38 points to end at 5.87 and Advantage Oil & Gas Ltd. was up 6.83% or 0.53 points to 8.29 in late trade.
Today’s biggest losers included Bombardier Inc (TSX:BBDb), which lost 17.27% or 3.99 points to trade at 19.12 in late trade. Descartes Systems Group Inc declined 5.78% or 4.89 points to end at 79.73 and SSR Mining (NASDAQ:SSRM) Inc shed 4.74% or 1.15 points to 23.10.
In New York, the Dow Jones Industrial Average lost 0.20%, while the S&P 500 index lost 0.30%, and the NASDAQ Composite index declined 0.72%.
After a bounce last week - despite remaining in bear market territory - the U.S. benchmarks continued to sink on the prospect of policy tightening that is likely to be highly aggressive, even as investors pare back bets from the prior week’s peaks.
In Bonds and Currencies
After last week’s pullback, bond yields continued to march ahead, in line with the most likely path for policy tightening on both sides of the border.
Yields on the Canadian 5-year were 0.071 points higher at 3.823%, yields on the Canadian 10-year 0.076 points higher at 2.409%, and yields on the benchmark U.S. treasury 0.076 points higher at 3.202%
The USD index was -0.20% lower at 103.97, while the USD/CAD pair was 0.11% lower at 1.2697 as the greenback retreated on lowered rate-hike bets, and the loonie was supported by the rebound in crude.