After two of getting whacked as investors sold down their holdings amid fears around what impact the covid-19 variant might have on the global economic recovery and growth, Canada's main stock market rebounded Thursday, buoyed by bargain buying and a settling of the oil price. In terms of direction, and reflecting the roller coaster nature of trading of late, the index did lose about 40 points over the last hour, though it settled again just before the closing bells.
In the end, the Toronto Stock Exchange ended Thursday's session up near 300 points or 1.45% at just 20,760, having been above 20,800. That in itself, though, was still 1,000 points below record all time highs hit just a month ago.
Among sectors, Financials gained 2.1% with Canada's top banks finally finding some support in the midst of their fourth quarter earnings season. TD Bank (TD.TO, TD) for example jumped near 5%. Among the other heavyweight sectors, Energy rose 1.25%. Materials was flat.
In terms of the tech sector, S&P Global Market Intelligence in a '2021 Tech M&A Outlook' has said the post-pandemic 'new normal' in Tech M&A is "anything but normal." In fact, according to the Outlook, it's "an order of magnitude higher than it was." Since the world started its drawn-out recovery from COVID-19, dealmakers of every type have been throwing money around at roughly twice the rate they were before the outbreak. the Outlook said.
The Outlook noted all five of the highest quarterly spending levels in the 20-year history of 451 Research's M&A KnowledgeBase have come during the current rebound, which began in Q3 of last year. "Acquisition spending that used to be measured in the measly hundreds of billions of dollars is now tipping into the trillions," it said.
Of commodities, gold ended lower on Thursday on a rising dollar as bond yields rose after U.S. initial jobless claims last week were lower than expected. Gold for February delivery settled down $21.60 to US$1,762.70 per ounce.
But West Texas Intermediate crude oil rose off a three-month low after OPEC+ said it will continue its policy of raising output by 0.4-million barrels per day monthly, while saying it could reconsider the hike should prices weaken. WTI crude for January delivery settled up $0.93 to US$66.50 per barrel, Marketwatch reported. February Brent crude, the global benchmark, was last seen up $0.30 to US$69.17 while Western Canada Select was up $0.57 to US$47.71 per barrel.