TSX rises as oil stocks gain on Brent touching $110 a barrel
SPY•Canada’s S&P/TSX Composite Index rose 0.11% to 36,176.55, its highest level since September 4, as energy stocks gained 2.8% and Brent touched $110 a barrel. The index rose 1.44% for the week.
1. Energy stocks lift TSX
Canada’s main stock index gained on Friday as energy shares rose 2.8%. Brent crude touched $110 a barrel for the first time since May, amid worries that escalating Middle East tensions could further tighten supplies.
2. Technology shares fall
Technology stocks fell 3.5%, with Shopify down 5% and BlackBerry down 7.7%. Josh Sheluk of Verecan Capital Management said the AI trade was affecting the TSX less than some U.S. indexes, while noting the Canadian index’s heavier weighting in energy and materials.
3. Rate concerns persist
Bank of Canada Governor Tiff Macklem warned that persistent elevated energy prices could make it harder to avoid raising interest rates. The central bank was not expected to raise rates at its October 28 decision, though money markets priced in a 25-basis-point hike in December. Canadian home sales declined again in September.
