Canada Stocks: Canada stocks rise as bond yields ease, energy stocks gain
CANADA STOCKS-Canada stocks rise as bond yields ease, energy stocks gain By Anand Gopal R
Oct 13 (Reuters) - Canada's main stock index rose on Tuesday, lifted by energy shares, while a global semiconductor selloff amid renewed AI concerns drove investors into government bonds, helping stabilize yields.
The S&P/TSX Composite Index .GSPTSE was up 0.4% at 35,799.22 points by 10:45 a.m. ET.
Energy shares .SPTTEN led gains despite lower oil prices
Natural gas solution firm Enerflex EFX.TO jumped 13.3% after securing a major data-centre power project that lifted its behind-the-meter generation backlog above 1.75 GW through 2028
Materials .GSPTTMT fell 2.1% as silver dropped more than 1%, while gold was little changed GOL/
Canada's 10-year government bond yield CA10YT=RR fell 2.3 basis points to 3.855%, while the comparable US 10-year yield US10YT=RR slipped to 5.1979%
"There's perhaps a sense in the markets that bond yields have peaked short term and that seems to be driving the market more than anything else," said Matt Skipp, president at SW8 Asset Management
Investors have been grappling with inflation concerns lately tied to higher energy prices and rising government debt
Global semiconductor shares were pressured by reports that Chinese memory-chip maker CXMT has made rapid advances, raising concerns that China is narrowing the technology gap MKTS/GLOB
Canada's technology sector nevertheless rose about 1%, helped by a 4.1% gain in Shopify SHOP.TO
Markets are pricing in at least one more 25-basis-point Federal Reserve rate hike by year-end, according to LSEG data
In Canada, the TSX posted its biggest weekly gain in five on Friday after soft jobs data reduced expectations of another Bank of Canada rate increase
Markets are now seeing a 28% chance of a hike at this month's meeting
Focus is also turning to corporate earnings, with major US banks including Goldman Sachs GS.N, JPMorgan Chase JPM.N and Wells Fargo WFC.N kicking off the US earnings season with their quarterly reports on Tuesday
TSX's financial stocks .SPTTFS added 0.8%
(Reporting by Anand Gopal in Bengaluru; Editing by Shailesh Kuber)
((AnandGopal.R@thomsonreuters.com))