Toronto Stock Exchange closes higher with energy and oil prices

TORONTO – The Toronto Stock Exchange ended a four-session pullback streak on Tuesday thanks to the financial sector, which benefited from higher bond yields, and the energy sector, which advanced with the price crude oil.

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Bond yields rose again, supported by expectations that U.S. Federal Reserve Chairman Jerome Powell would get a new tenure as central bank head, which could lead to higher rates. interest next year, maybe sooner than expected.

The yield on 10-year US Treasuries rose to 1.679%, while the Canadian yield was 1.809%.

“In Canada we’re tightening up and we’ve been for some time, so I don’t think it’s as much of a surprise here as in the United States, (where) they seem to think the recovery is going to last for a while. always, ”observed Colin Cieszynski, chief market strategist at SIA Wealth Management.

Some observers believe the Fed will accelerate interest rate hikes.

“But I’m not convinced that the United States is going to move ahead of its timetable unless inflation really gets out of hand, which is why I think they are trying to bring down the price of oil,” he said. he asserted in an interview.

New data on core inflation, which is under scrutiny by the Fed, will be released on Wednesday. Economists expect the October reading to be 4.1%.

Toronto’s S & P / TSX Composite Index gained 33 points to end the day with 21,453.77 points.

The energy sector posted the strongest growth on Tuesday at 3.8%, as crude oil prices rebounded 2.3% after weakening for about a week. The finance sector, for its part, rose 0.5%.

On the downside, the information technology sector dropped 1.6%, while the materials sector retreated 1.1%.

In New York, the Dow Jones Industrial Average climbed 194.55 points to 35,813.80 points. The broader S&P 500 index gained 7.76 points to 4690.70 points, while the Nasdaq composite index fell 79.62 points to 15,775.14 points.

On the New York Commodities Exchange, the price of crude oil rebounded from US $ 1.75 to US $ 78.50 per barrel, while that of natural gas rose 17.4 cents US to 5.04 US $ per million BTUs.

The price of gold fell US $ 22.50 to US $ 1,783.80 per ounce and the price of copper rose 2.7 cents US to US $ 4.42 per pound.

In the currency market, the Canadian dollar traded at an average of 78.70 cents US, down from 78.86 cents the previous day.

The Canadian Press

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