Monday threw up a day like few others before it with Canada's main stock market, the Toronto Stock Exchange, booking massive early session losses, but then almost miraculously recovering nearly all of that over the course of the trading day, before eventually closing down with modest enough losses. It would be a while before we saw a day like it again, right?
Nope. Tuesday threw up something oddly similar. After slumping to a session low of 20,130 in the morning, the TSX fought back to stand at near 20,747 with about 90 minutes of trading left, with the resources heavy Index buoyed by higher commodity prices. But in a twist, on this day the TSX did slump back from there and ended up just 20 points higher at just under 20,600.
The two days of wild trading may reflect some investor concerns and nerves ahead of a looming interest rate hike cycle in both Canada and the United States -- and we will know more about that tomorrow with both the Bank of Canada and the US Fed due to provide policy updates.
Uncertainty about whether Russia will invade Ukraine raised geopolitical tensions, and that too weighed on markets.
For its part, Wells Fargo Investment Institute in looking Tuesday at what the stand off between Russia and Ukraine may mean for investors said it does "not favor reducing the portfolio exposure to risk assets materially." It continued to prefer equities and commodities over fixed income, U.S. over international markets, and quality and cyclical equity sectors over defensives.
Among sectors here, Energy was up near 2.5%. Info Tech closed down about 3.9%.
Of commodities, gold rose to the highest in more than two months on Tuesday even with bond yields and the US dollar strengthening as investors moved to safe haven assets as the Federal Reserve's policy committee begins a two-day meeting that could end with higher US interest rates, and international tensions continue to rise around Russia and Ukraine. Gold for April delivery closed up $10.80 to settled at US$1,855.00 per ounce, the highest since Nov.18.
And West Texas Intermediate (WTI) crude oil rose. WTI crude for March delivery closed up $2.29 to US$85.60 per barrel, Marketwatch reported. March Brent crude, the global benchmark, was last seen up $1.73 to US$88.00, while Western Canada Select was up $2.34 to US$72.12 per barrel.