Canada’s main stock index struggled for direction on Tuesday, with gains in energy stocks offsetting losses in technology shares, as investors awaited developments following the previous session’s rise.
At 10:22 a.m. ET, Toronto’s S&P/TSX composite index was little changed at 30,306.23 points. Higher commodity prices and a potential end to the longest U.S. government shutdown had lifted the index on Monday.
The U.S Senate passed a bill late on Monday to end the shutdown that has weighed on the U.S. economy and stalled economic data, fueling concerns among Federal Reserve policymakers and traders on the state of the economy.
“The excitement around the government reopening was strong yesterday, which surprised me because the market didn’t fall during the shutdown — it actually moved higher once the reopening was confirmed. That euphoria, however, seems to have been a one-day phenomenon,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
“Now, investors are looking for the next catalyst.”
Further dampening risk appetite, the ADP preliminary weekly payroll figures showed U.S. private employers shed an average of 11,250 jobs.
Concerns about stretched valuations of technology stocks have also resurfaced. The technology sub-index fell 1.5%, leading sectoral losses.
Oil prices rose due to the latest U.S. sanctions on Russian oil, pushing the energy sector up 1.1%.
Gold prices hit their highest level in nearly three weeks, supported by growing expectations of another U.S. interest rate cut in December and the possible end to the federal shutdown. Gold stocks rose 0.3%.
Brookfield Renewable Partners shares declined 5.6%, falling to the bottom of the benchmark index, after the electric utility announced a $650 million equity raise.
Meanwhile, China is willing to resume exchanges with Canada and cooperate in various fields, its foreign minister told his Canadian counterpart.
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