By Ketki Saxena
Investing.com – In Toronto, the S&P/TSX Composite Index closed the day at 21,977.83 points or down 0.13% in the day’s trading.
Losses on the TSX were driven primarily by energy, with the TSX Canadian Energy Sector down 2.35% today as crude oil tanked. As of 4:00 p.m ET, WTI futures were trading at 103.19 a barrel, or down 9.40%, while Brent futures were at $106.56, or down 9.21% so far today. Both benchmarks for crude fell earlier today on news of a 9-day lockdown in Shanghai and the anticipated decline in demand.
The healthcare sector (-4.10%) also led the TSX lower, as investors sold pot stocks. Investors are likely capitalizing on last week’s gains ahead of a benchmark vote by the U.S. House this week regarding the federal legalization of cannabis. Losses in energy and healthcare offset gains in tech (+1.79%), and in the heavyweight financial sector (+0.04%). Financials continue to gain on the expectation of aggressive rate hikes from both the BoC and Fed this year.
The biggest gainers of the session on the S&P/TSX Composite were Hut 8 Mining Corp (TSX:HUT), which rose 6.26% or 0.46 points to trade at $7.81 at the close. Gfl Environmental Inc (TSX:GFL) added 4.30% or 1.66 points to end at $40.29 and Shopify Inc (TSX:SHOP) was up 3.78% or 32.02 points to $878.67 in late trade.
Biggest losers included Canopy Growth Corp (TSX:WEED), which lost 8.31% or 0.90 points to trade at $9.93 in late trade. Aurora Cannabis Inc (TSX:ACB) declined 8.24% or 0.46 points to end at $5.12 and Vermilion Energy Inc . (TSX:VET) shed 6.85% or 2.00 points to $27.20.
While Canada’s commodity heavy benchmark index was driven lower by losses in energy and metals, equities south of the border traded on a more positive note today.
In New York
The S&P 500 was 0.72% higher at the close, the DJIA was 0.27% higher, and the NASDAQ was 1.31% higher. U.S. indices have rallied following strong U.S. economic data in recent weeks, and due to investors buying the dip in tech stocks that were aggressively oversold in the initial risk-on pivot that immediately followed the Russian invasion of Ukraine.
The NASDAQ today in particular was supported by Tesla (NASDAQ:TSLA), as shares soared today following the announcement of a planned stock split.
The benchmark U.S. indices continue to be driven higher despite hawkish comments from Federal Reserve policymakers last week. Higher interest rates tend to negatively impact equities, apart from the financial sectors which benefit from a high-yield environment in terms of interest income.
In Bonds and Currencies
Bond yields were slightly lower today, in a key reversal from last week. Yields on Canada’s benchmark 10-year yield were 1.00% lower at 2.476%, while yields on GoC 5 year yields were 0.82% lower at 2.476%. Yields on the 10 year U.S. treasury were at 2.457%, or down 1.46% today.
The USD/CAD pair was 0.41% higher, with 1.252 loonies to a greenback, as losses in energy pressured Canada’s commodity currency lower.