Canada's TSX edges up as bond yields retreat, utility shares advance
EWC•The S&P/TSX Composite rose 0.19% to 35,587.45 as utilities gained and bond yields retreated, while losses in energy and materials limited the advance.
1. Utilities lead gains
Canada’s benchmark stock index edged higher on Tuesday, with utilities up 1% as global bond yields retreated. The energy sector fell 1.4% and materials dropped 0.7%, while the index was on track for a third straight day of gains.
2. Utility deals and oil
Emera said it would acquire Canadian Utilities in an all-stock deal valued at C$14.3 billion ($10.02 billion). Emera fell 2%, while Canadian Utilities edged higher; ATCO jumped 12.8% after announcing plans to spin off as a standalone publicly traded industrial services company called New ATCO. Oil fell by more than $2, with Brent dipping below $100 a barrel.
3. Rates remain in focus
The U.S. 10-year Treasury yield dipped after reaching a 24-year high on Monday, and the Canadian 10-year government bond yield also edged lower. Persistent inflation and rising government debt continued to keep bond and equity markets on edge; markets were pricing in at least one more quarter-point U.S. Federal Reserve rate hike and a 25-basis-point Bank of Canada increase before year-end.
