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Canadian Markets at Close:TSX, CAD Higher on Commodity Rally; GoC Bond Yields Soar

Published 2022-03-21, 04:28 p/m

By Ketki Saxena

Investing.com -- In Toronto, the S&P/TSX Composite Index was at 22,009.13 points, or 0.87% higher at the close. Gains were primarily in the Energy sector(+4.30% ) and Metals and Mining (+2.94%).

The TSX leans heavily towards commodities with 30% of its weighting towards energy and metals, which enabled Canada’s benchmark index to gain on a day that saw risk-off sentiment negatively affect global markets.

In New York, the S&P 500 was down 0.04%, the Dow Jones was down 0.58%, and the NASDAQ was down 0.32%.

TSX Key Sectors Today

Gains on the S&P/TSX Composite were driven primarily by energy as crude oil soared today, with Brent up 7.76% and Crude Oil WTI Futures up 7.22% at the time of writing. Crude gained today as EU nations mulled sanctions on Russian oil, and after drone attacks on Saudi energy facilities over the weekend.

TSX gains were also driven by metals, with gold up 0.30% today as investors sought a safe-haven from continuing and escalating conflict between Russia and Ukraine. The metal was also influenced by Fed Chairman Jerome Powell’s comments today that the central bank will likely need to move faster and more aggressively than initially anticipated on inflation. Investors appear concerned that real rates will likely remain negative while cooling CPI lags behind the rate hike, even if the aggressive targets are realized.

Silver was 1.24% higher, while aluminum and palladium both led gains in metals, 3.96% and 3.86% higher respectively so far today.

Canada Stocks: Today's Market Movers

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The biggest gainers of the session on the S&P/TSX Composite were Lithium Americas Corp (TSX:LAC), which rose 8.12% or 2.86 points to trade at 38.10 at the close. Vermilion Energy (TSX:VET) Inc . (TSX:VET) added 7.46% or 1.87 points to end at 26.95 and Advantage Oil & Gas Ltd. (TSX:AAV) was up 7.16% or 0.53 points to 7.93 in late trade.

Biggest losers included Badger Infrastructure Solutions Ltd (TSX:BDGI), which lost 7.27% or 2.18 points to trade at 27.79 in late trade. West Fraser Timber Co Ltd (TSX:WFG) declined 7.11% or 8.85 points to end at 115.55 and WELL Health (TSX:WELL) Technologies Corp (TSX:WELL) shed 5.51% or 0.27 points to 4.63.

In Currencies and Bonds

The USD/CAD pair was down 0.10% today, with C$1.259 to one U.S. dollar. The loonie strengthened against the greenback as oil drove gains in Canada’s commodity-driven currency. However, the US Dollar Index was up 0.28% today, as the dollar strengthened on Powell’s comments.

Bond yields were higher as investors poured money out of treasures into other safe havens like gold, in what appears likely to remain a negative real interest rate environment for the foreseeable future.

Yields on the Government of Canada’s 5-year and benchmark 10-year bonds were higher at 2.189% and 2.339% respectively. Yields on the U.S. 10 year treasury were higher at 2.31%

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