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Daily Markets Update: Nasdaq Hits Record as Yields Top 5.3%, TSX Flat, Loonie Near 70¢

  S&P/TSX 35,518.55 +0.04% S&P 500 7,773.99 +0.66% Nasdaq 27,477.31 +1.05% Brent US$100.42 -1.8% USD/CAD 1.4250 Flat US 10-yr 5.315% +3.8 bp Monday, October 5 close, with Asia’s Tuesday session. Wall Street’s tech rally pushed the Nasdaq to a fresh record on Monday even as long-term bond yields kept climbing: the U.S. 10-year Treasury yield settled at 5.315%, a new 52-week high. Canada’s TSX barely moved, with tech gains offsetting a slide in energy and financials, and Cenovus fell after unveiling a C$5.7-billion takeover of Athabasca Oil. Oil dropped nearly 2% as G7 emergency stock releases and rising Middle East exports eased supply fears, and the loonie hovered near 70 U.S. cents, close to its weakest level in about 18 months. Canada: TSX Flat as Tech Offsets Energy Index / Stock Close Change S&P/TSX Composite 35,518.55 +0.04% Shopify (SHOP) — +5.7% Athabasca Oil (ATH) — +13.5% Cenovus Energy (CVE) C$44.86 -3.0% Suncor Energy (SU) — -1.2% The TSX added 15.90 points ...
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S&P/TSX Composite Index Faces Broad-Based Decline Amidst U.S. Market Strength

 

 Canada’s main stock index, the S&P/TSX composite, closed lower on Wednesday in a broad-based decline. The subdued trading session coincided with U.S. markets being closed for the Juneteenth holiday.

The key points are as follows:

  1. Market Performance:

    • The S&P/TSX composite index closed 94.40 points lower at 21,516.90.
    • This decline continues a trend that has seen the TSX index down approximately 4.4% over the last month.
    • In contrast, the S&P 500 in New York has risen by 3.5% during the same period.

  2. Two Markets, Different Trajectories:

    • Michael Currie, senior investment adviser at TD Wealth, highlighted the divergence between U.S. and Canadian markets. While the U.S. market remains strong, Canada’s market has been weakening.
    • Currie stated, “It’s certainly not crashing by any stretch, but the general trend has been negative, and that seems to be more of what’s continuing today.”

  3. Sector Performance:

    • The industrial and health care sectors led the declines, down approximately 0.95% and 1.1%, respectively.
    • Financials were down 0.5%, and energy declined by about 0.2%.
    • The Canadian dollar traded at 72.94 cents US, slightly higher than the previous day.

  4. Bank of Canada’s Decision:

    • The Bank of Canada recently lowered its key rate for the first time in over four years. Deliberations around this decision showed some hesitancy, but markets still anticipate another rate cut in July.
    • There is concern that as rates decrease, the Canadian dollar (the loonie) may weaken against the U.S. dollar.

  5. Commodity Markets:

    • Commodity markets were also closed due to the U.S. holiday.

In summary, while the S&P/TSX composite index experienced a decline, the broader context involves contrasting market trajectories between Canada and the U.S. Investors will closely watch further developments and central bank decisions in the coming weeks.


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