TSX rises as lower bond yields offset tech and energy weakness
SPY•Canada’s S&P/TSX Composite Index rose 0.52% to 35,770 points as lower bond yields supported broad gains, offsetting declines in technology and energy shares. The 10-year bond yield fell about 8 basis points to 3.795%.
1. Yields lift index
Canada’s main stock index rose 0.52% to 35,770 points by 10:41 a.m. ET on Thursday, rebounding after sharp declines in the previous session. The benchmark 10-year bond yield slipped about 8 basis points to 3.795%, supporting broad sectoral gains.
2. Sector moves diverge
Materials shares gained 1.4% as precious metal prices rebounded on a softer dollar. Canadian technology equities fell 0.7%, with Shopify down 1.4% and Celestica down 7.7%; energy shares slipped 0.5% as oil prices eased 0.7%.
3. Manufacturing and rates
Factory sales grew 1.5% in August from July, led by primary metals, though economists remained cautious about a manufacturing recovery. Thomas Ryan of Capital Economics said he expects the Bank of Canada to deliver only two of the roughly four rate hikes priced in by markets, with tightening serving mainly as a risk-management measure against upside inflation risks.
