By Ketki Saxena
Investing.com -- At the close in Toronto, the S&P/TSX Composite Index was at 20,819.09 points up 0.14% in the day’s trading, as markets rebounded from last week’s losses following news of easing tech regulations and Covid-19 restrictions in China.
Tech, which tracked the NASDAQ Composite and gains in Chinese listed-tech stocks, was the best performing sector on the TSX today.
Despite closing in the green, the Canadian index retreated from today’s high of 20,931.94 in the late afternoon, following a reversal in crude, and a sour turn in market sentiment following news that U.S. inflation is much closer to its all-time high than initially calculated.
A report from U.S. economists including former Treasury Secretary Lawrence Summers notes that per modern calculation methods, core inflation peaked at 9.1% in June 1980, compared to the previous calculation of 13.6%. The data implies the Fed will need to be significantly more aggressive than has been believed so far.
Further gains on Canada’s commodity heavy index were also capped by a reversal in crude. Worries about U.S. economic growth pressured the commodity despite the boost from the Saudi light Arab crude price hike and ongoing worries of inadequate supply.
Materials also continued to be pressured by gold, as rising yields and a strengthening dollar lowered the appeal of non-yielding bullion.
The US Dollar Index was +0.25% at 102.40. The USD/CAD pair was down 0.13% as commodity currencies gained strength from crude and a (relative) return of risk appetite.
Yields on the Canadian 5-year were at 3.139%, while yields on the Canadian 10-year were at 3.209%. Yields on the U.S. 10-year treasury were at 3.044%.
Peyto Exploration (TSX:PEY) (+8.34%), Brookfield Business (TSX:BBUC) (+6.46%), and NFI group (+6.16%) were amongst the biggest gainers on the TSX today, while Tilray (TSX:TLRY) (-6.21%), BRP Inc (TSX:DOO) (-5.82%), and Canopy Growth (TSX:WEED) (-5.35%) were amongst today’s biggest losers.