Canada's main stock market, the Toronto Stock Exchange, recovered losses that saw it drop to near 20,850 early Monday, and after making steady progress from mid-morning onwards it managed to eke out all time record intra day and closing highs near 20,985 by day end, buoyed by high oil prices and technology stocks even with bond yields on the rise.
The gains may also, to some extent at least, reflect investor confidence ahead of the coming earnings season across North America as a whole. For its part, Wells Fargo in a note this Monday noted the U.S. third quarter earnings season ramps up in the coming weeks and, despite rising costs, it expects another quarter of strong profit growth. "While earnings growth may have peaked for this cycle, absolute profit levels have not. We expect corporate profits to continue to expand at a more normalized pace in the coming quarters."
The Canadian earnings season gets on track over the coming two days with both CN Rail (CNR.TO, CNI) due to report for Q3 after trade Tuesday and rival CP Rail (CP.TO, CP) due to report early Wednesday.
Among sectors, Info Tech was up 1.9%, led by Shopify (SHOP.TO). Energy lost 0.2% despite higher oil, while Materials was about 0.25% lower,
Of commodities, gold closed lower on Monday as bond yields rose. Gold for December delivery settled down $2.60 to US$1,765.70 per ounce. But West Texas Intermediate crude oil rose for a third-straight session, climbing to fresh seven-year highs on concerns that demand is outstripping supply as the global economic recovery from the pandemic continues. WTI crude for November delivery settled up $0.16 to US$82.44 per barrel, a highest close since the fall of 2014, Marketwatch reported. December Brent crude, the global benchmark, was last seen down $0.77 to US$84.09 while Western Canada Select was down $0.42 to US$66.99 per barrel.