By Ketki Saxena
Investing.com – At 1:00 p.m Toronto, the S&P/TSX Composite Index was at 18,396.46 points, up 0.37% in the day’s trading.
North American equities rebounded today after U.S. spending data beat forecasts, and comments from typically hawkish Federal Reserve Governor Christopher Waller and St. Louis Fed President James Bullard, who said Thursday they favoured a 75 basis-point rate hike in July rather than the 100 bps some had bet on after data showed June U.S. inflation at 9.1%.
The commodity-heavy Canadian index was also supported by the morning’s gains in crude, following reports from Reuters that a boost in output from Saudi Arabia will not be forthcoming, and amid uncertainty about OPEC’s ability to increase production.
However, both crude benchmarks are on track for a weekly decline as worries of recession-driven demand destruction, exacerbated by slowing growth in China, remained at the forefront. Traders will also be keeping a close eye on U.S. President Joe Biden’s Saudi Arabia trip, where he will request more output from the cartel.
The Canadian index was also supported by a broad-based rebound in metals as rate-hike expectations - and worries of a drop in industrial output - pared back. Gold however continued to decline, remaining pressured by high treasury yields and a relentlessly strong dollar.
Heavyweight financials also led the TSX higher today, tracking US bank stocks higher following strong-second quarter results from Citigroup (NYSE:C) that boosted sector sentiment.
Healthcare meanwhile was the worst performing sector on the TSX today, as investors sold Cannabis stocks following yesterday’s red hot rally on news of a U.S. federal vote on legalization potentially next week. The bill however is widely expected to stall in the Senate, as in 2020.
Financial and Energy stocks were the biggest gainers on the TSX today including Methanex (+5.82%), Trisura (TSX:TSU) (+4.90%), Advantage Oil and Gas (+4.89%), Boyd Group (TSX:BYD) IF (+4.12%), and Vermilion Energy (TSX:VET) (+4.02%).
Today’s biggest losers included Wesdome Gold (TSX:WDO) (-13.24%), Tilray (TSX:TLRY) (-11.36%), Canopy Growth (TSX:WEED) (-9.00%), Aurora Cannabis (TSX:ACB) (-7.22%), and Ballard Power (TSX:BLDP) (-6.44%).