TORONTO — Canada's main stock index gained more than 100 points in a broad-based rally with only the energy sector falling along with crude oil prices.
Financial markets were a bit choppy to start trading Tuesday, but managed to gain some ground throughout the day and turned higher towards the close.
The S&P/TSX composite index ended the day up 141.68 points to 21,377.18.
Materials and industrials led, with the heavyweight financials sector also having a strong day as the 10-year U.S. bond yield rose to nearly two per cent, its highest level since late 2019.
Higher gold prices pushed materials up two per cent as investors sought out a hedge against soaring inflation ahead of Thursday's CPI report in the U.S. that is expected to be 7.3 per cent in January.
The April gold contract was up US$6.10 at US$1,827.90 an ounce and the March copper contract was down slightly at US$4.46 a pound.
Markets have been striving for direction over the last few weeks with big days up and down, said Candice Bangsund, portfolio manager for Fiera Capital.
"I think investors are just again trying to recalibrate their expectations for central bank policy," she said in an interview.
Industrials got a boost from TFI Inc., whose shares increased 8.1 per cent after reporting strong quarterly results, and Air Canada, which climbed 4.8 per cent.
Higher bond yields helped banks and insurance companies.
In New York, the Dow Jones industrial average was up 371.65 points at 35,462.78. The S&P 500 index was up 37.67 points at 4,521.54, while the Nasdaq composite was up 178.79 points at 14,194.46.
Large cap tech stock led in the U.S.
"Looks like investors may be stepping in to buy the dip after the steep year-to-date selloff that we've seen in the in the tech space," Bangsund said.
Big technology players like Amazon, Microsoft and Apple that have already reported results led the charge.
"There's no real clear catalyst for those gains, particularly in the technology sector, because interest rates are rising today, and that's typically a headwind for the most expensive corners of the market, and is largely why the tech space has sold off so profoundly here in 2022," she said.
In Canada, the tech sector, which is a smaller market player, gained 0.8 per cent with shares of Quaterhill Inc. rising 3.5 per cent.
Energy lost 3.9 per cent as crude oil prices fell after enjoying a strong run to climb above US$90 per barrel.
Baytex Energy Inc. fell 6.7 per cent while Cenovus Energy Inc. was 6.4 per cent lower after reporting a higher quarterly loss.
The March crude oil contract was down US$1.96 at US$89.36 per barrel and the March natural gas contract was up 1.6 cents at US$4.25 per mmBTU.
The Canadian dollar traded for 78.68 cents US compared with 78.81 cents US on Monday as it lost ground with weaker crude prices.
This report by The Canadian Press was first published Feb. 8, 2022.
Companies in this story: (TSX:QTRH, TSX:AC, TSX:TFII, TSX:BTE, TSX:CVE, TSX:GSPTSE, TSX:CADUSD=X)
Ross Marowits, The Canadian Press
