UPDATE: TSX Closes Up 32 Points After Epic Marathon Effort; Hits Wall On Fed Minutes, But Gets Second Wind
From Olympic hurdlers to marathon runners. Yesterday we compared the trading day on the Canadian stock market to the race of an Olympic 110 metres hurdler who dashed out of the blocks but then hit the first hurdle and fell back badly only to recover and finish with a burst. Today, the trading day mirrored that of a marathoner who was - despite feeling a few early twinges - making steady progress until he hit a wall late on and suffered badly for a time before getting a second wind.
Let's say the wall marked the release of the Fed Minutes, with the U.S. central bank declining to provide a strong signal of plans to further stimulate the economy there. This led to the TSX falling about 70 points in a matter of minutes, from near the 11,560 level down to 11,490. It recovered to touch session highs just before the finish line, but the effort in getting there proved heavy and the index slowed again in taking the ribbon.
Buying interest may reflect bargain hunting, particularly in energy and financial stocks after they were sold off heavily in recent times. The energy sector rose around 1.5% and financials close to 1%. But metals and mining was again the biggest percentage loser, down near 1%.
Crude oil for August delivery on the New York Mercantile Exchange ended up 2.3% at US$85.81, losing some steam late in the futures trading day as the minutes from the latest FOMC meeting suggested limited prospects for further quantitative easing. Gold futures for August delivery on the Comex division of the New York Mercantile Exchange closed down US$4.10, or 0.3%, at US$1,575.70 an ounce, in a lacklustre trading session.
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