Canada Stocks Rallied Late To Post Modest Gains; Crude Oil Seen "Getting Sucked Into the Equity Vortex Again Today"

Last Updated: Friday, May 20, 2022 4:11 PM | MT Newswires

Canada's main stock market, the Toronto Stock Exchange, recovered more than 140 points over the last hour, and around 260 points from session lows hit early afternoon, to close out Friday with a modest -- but impressive, given the late rally -- gain of 15 points, and standing near the 20,200 level. The resources heavy index here was buoyed by higher commodity prices, which is a subject that market watcher Robert Yawger touched on -- albeit from a US angle -- in a note today.

Of note, the S&P 500 did also recover to close flat to barely higher FRiday, while the Nasdaq also rallied late but finished with modest losses.

Over at Mizuho Securities, Robert Yawger earlier this afternoon had noted the S&P 500 was down 2.06% versus 3820.42, or down 20.71% versus the all-time high of 4818.62 from January 4, meaning the market is in bear market territory down 20.0% or more. Yawger said: "Hard for Crude Oil to hold onto gains when S&P 500 demand indicator goes sour. Wednesday was the perfect example...very bullish EIA storage report with a surprise Crude Oil draw, and a Gasoline storage lower for size. Still Crude Oil was down 2.50% versus the S&P 500 4.04%. The commodity getting sucked into the equity vortex again today."

Of commodities today, gold managed a small rise on Friday as bond yields continue to drop, while the US dollar edges higher. Gold for August delivery closed up $0.60 to settle at US$1,848.40 per ounce.

Also, West Texas Intermediate crude oil posted a small gain even as China eases some lockdown measures while US gasoline demand is on the rise. WTI crude for July delivery closed up $0.39 to US$110.28 per barrel, Marketwatch reported. July Brent crude, the global benchmark, was last seen up $0.51 to US$112.55 while Western Canada Select was up $1.41 to US$95.82 per barrel.

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