Shop Stock: Canada Stocks Recoup Some Losses Late On, But Still End Session Down 20 Pts; Lightspeed and Shopify Weigh
The Toronto Stock Exchange halved its losses late on but still closed down around 20 points or 0.1% on Thursday, taking it back below the 19.300 level breached yesterday when Canada’s main stock market enjoyed triple digit gains that had left the Index up about 1% for the week, and up about 11% year to date. A continued weakening in oil prices was probably at least party responsible for today’s slip up. So too was weakness in Info Tech and the Cannabis sector. But higher gold prices boosted the Materials sector, likely capping losses.
Among sectors Info Tech was down 1.6%, with both Lightspeed (LSPD.TO) and Shopify (SHOP.TO) much weaker. Industrials were down about 0.5%. But the Materials sector gained 1.9%.
Of commodities, gold climbed back above the US$1,800 mark on Thursday, climbing to a three-month high on a weak dollar, lower bond yields and inflation concerns. Gold for June delivery settled up $31.40 to US$1,815.70 per ounce, the highest since Feb.12.
However, West Texas Intermediate (WTI) crude oil fell for a third-straight day as worries over weak U.S. gasoline demand and rising Covid-19 infections in India, checked optimism over a big drop in U.S. oil inventories. WTI oil for June delivery settled down $0.92 to US$64.71 per barrel, Marketwatch reported. July Brent crude, the global benchmark, was last seen down $0.84 US$68.12 while Western Canada Select was down $0.02 to US$52.08 per barrel. The drops comes after the Energy Information Administration said U.S. oil inventories fell by 8-million barrels last week, a bullish sign, but the market focused on the fifth-straight rise in gasoline inventories, which was taken as a sign of weak demand.