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TSX Hits All-Time Intraday High, Closes at 15,953.51

The Toronto Stock Exchange’s S&P/TSX composite index rose to its highest intraday level ever, edging above 15,963, before pulling back to finish the day & week at 15,953.51. For the day, the TSX was up 61.88 points (0.39%).

The TSX was up 96.29 points (0.60%) over last week’s finish at 15,857.22.

The TSX is now up more than six per cent since early-September, nearly a 1,000-point run-up; however, as we Canadian investors know, the TSX’s year-to-date return of slightly above four per cent have lagged the rest of the world.

Gains were pushed by surging oil prices; also, investors bet against the Bank of Canada continuing to aggressively raise rates. Banks have experienced strong gains – due to rising rates – as loan revenue has jumped. The Industrials sector has also gained, by 9.5 per cent, since early-September, and the Tech sector has risen 8.5 per cent in the same timeframe. The Materials group, however, struggled to a loss of 1.1 per cent since early-September.

As markets continue to surge, safe-haven asset Gold has declined. Utilities, generally seen as a defensive sector, has been relatively flat with a 0.7 per cent gain since September 8th.

Brent crude oil rose as high as $60.08 USD per barrel on Friday.

The Loonie dropped this week by 1.27 cents USD (1.60%) to finish at 77.95 cents USD.

Strong Q3 Earnings Push U.S. Markets Higher

Q3 earnings have been stronger than expected so far. U.S. Gross Domestic Product (G.D.P.) rose by an annualized 3.3 per cent during Q3, and September unemployment figures were at a 16-year low of 4.2 per cent.

The Dow Jones Industrial Average (DJIA) spiked 31.92 points (0.14%) to finish at 23,432.78.

The S&P 500 surged by 20.67 points on Friday, a jump of 0.81%, and is up 2.91% since early-September.

The FAANG companies propelled NASDAQ to another strong week. On Friday, the NASDAQ rose by 144.49 points, good for a daily gain of 2.20 per cent.

The VIX, a market volatility index, dropped by 13.27 per cent on Friday.

Jack Abin, Chief Investment Officer at BMO Private Bank in Chicago, said “Anyone who is drawing parallels to the tech bubble of 1999 has to at least consider that this rally in those large names is really fueled in large part by earnings, not just hope.” He added, ““There are certainly similarities between the tech bubble and now, but the underpinnings of this rally are still a lot more solid.”

Sources: Globe Advisor, Yahoo! Finance