Canada’s main stock index rebounded on Wednesday, recovering from the steepest single-day drop since April in the previous session, as energy and technology shares led the upward charge.
At 10:16 a.m. ET, Toronto’s S&P/TSX composite index was up 0.15% at 29932.49 points.
The energy sector emerged as the standout performer, climbing 1%, as oil prices continued to rise for a second consecutive day, up about 2%
Meanwhile, material stocks held steady despite ongoing volatility in precious metals markets. Gold continued its decline after having plummeted more than 5% in the previous session.
“The fact that gold is selling off while inflation data is inching upward is somewhat counterintuitive. I actually attribute a lot of gold price movement to profit taking because it’s had an incredible run-up,” said Shiraz Ahmed, founder and CEO of Sartorial Wealth Inc.
He added that historically, a rapid increase in prices is seen as a bubble, so the recent decline in precious metals is viewed positively.
Despite the volatility, gold remains on track for its best annual performance since the 1979 oil crisis. Canada’s benchmark index, heavily weighted toward commodity-related stocks, has ridden this golden wave to a 20.9% gain so far this year.
The technology sector also contributed to Wednesday’s recovery, advancing 0.8%, with the cybersecurity firm BlackBerry surging 7%.
Additional support came from industrials and real estate which rose 0.7% and 0.5%, respectively.
Consumer discretionary .and consumer staples bucked the trend, declining 0.3% and 0.1%, respectively.
Market participants now await Friday’s release of the U.S. consumer price index - a critical inflation indicator that could provide insights into the monetary policy trajectory of the Federal Reserve.
Additionally, Canadian retail sales figures, due on Thursday, will offer a glimpse into domestic consumer spending patterns.
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