By Ketki Saxena
Investing.com -- At 10:00 a.m in Toronto, the S&P/TSX Composite Index was at 18,820.20 points, up 1.18% shortly after the opening bell.
Canadian equities tracked U.S. stocks higher, which rebounded after disappointing forward guidance from Apple (NASDAQ:AAPL) yesterday, and as investors await key earnings this week, including from Netflix (NASDAQ:NFLX) today to provide further guidance on rate-sensitive tech.
Better than expected results from IBM (NYSE:IBM) also helped lift the sector after yesterday’s sell off.
Further gains on the TSX this morning were capped by a slide in crude prices, and weakness in industrial metals.
Commodities
Crude prices were down 1.25% this morning as the Chinese industrial hub of Shanghai ordered new rounds of mass testing for the city’s 25 million inhabitants, raising fears of new lockdowns traders worry will lead to dramatic demand destruction in the world’s second-largest importer of crude. However brent held above the $100 benchmark as tight supply continues to support the market. Analysts also note that risk for further disruption in crude remain skewed to the upside if Russian gas does not start flowing back to Europe at the end of this week.
Traders will also be watching for U.S. inventory reports from the American Petroleum Instituted, followed Wednesday morning with more official U.S. government numbers.
Industrial metals including copper, aluminum and zinc were also pressured by worries of potential lockdowns in Chinese industrial hubs.
Gold meanwhile posted a modest gain, helped by a retreating U.S. dollar as rate-hike bets continued to pare back following last-weeks comments from Fed Governors.
Canadian Economics
The Globe and Mail reports that the Federal government plans to implement its oil and gas emissions cap through a new carbon pricing system that may charge the Canadian energy sector more heavily than other industries. Alberta meanwhile remains firm on the fact that it will refuse to accept a federal plan that restrains its formidable capacity to produce fossil fuels.
No Major Canadian Economic data is expected today.
Corporate
Major stories on Bay Street today include news from Reuters that private equity firm CVC Capital and wood panel manufacturer Kronospan have submitted a joint expression of interest to acquire Canada’s West Fraser Timber (TSX:WFG) Co, causing shares to surge.
No Major TSX earnings are expected today.
PrairieSky Royalty (TSX:PSK) reported earnings yesterday after the bell, highlights including a 182% surge in funds from operation as the company from record royalty production, unhedged pricing, and its position as a royalty company that keeps it somewhat shielded from inflationary pressure.