American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

TSX Composite analysis as Canada bond yields, Loonie crash

by admin March 5, 2025
March 5, 2025
TSX Composite analysis as Canada bond yields, Loonie crash

Canadian stocks remained under pressure this week as concerns about the new trade war with the United States continued. The TSX Composite index retreated to a low of C$25,000, down by 3.45% from its highest point this year. So, what next for the blue-chip index as the Canadian dollar and bond yields plunged?

Canadian dollar and bond yields have slumped

The TSX Composite Index, which tracks the biggest Canadian stocks has pulled back as investors have remained jittery about the economy.

The Canadian dollar, popularly known as the loonie, has dropped to 1.4500 against the US dollar. It has moved to the lowest level since February 3, and is down by almost 10% from its highest level in 2024. 

Canada’s bond yields have plunged, a sign that investors are moving from equites to the bond market. The ten-year government bond yield plunged to a low of 2.80%, down from the year-to-date high of 3.56%.

Similarly, the 5-year yield crashed to a low of 2.50%, down from the 2023 high of 4.45%, while the 30-year yield moved from a high of 4.04% to 3.07%, its lowest level since September 17. 

The Canadian dollar and bond yields have plunged as concerns about the next actions by the Bank of Canada (BoC) remained. It has become one of the most dovish central banks in the developed world as it slashed interest rates in each meeting since June last year. It has moved them from 5% to 3%, and there are odds that it will continue with this trend.

The BoC is under pressure now that the Canadian economy is slowing and inflation has moved to below 2%. Also, it is staring at major risks now that the Trump administration has moved to impose more tariffs on the country.

Analysts expect that the Canadian economy will be affected, erasing many of the gains made in the fourth quarter when it surged.

Canadian stocks are falling

The TSX Composite index crashed by more than 1.55% on Monday after Trump confirmed that he would move on with his tariffs. These tariffs will be 25% on most imports and another 10% on energy products.

The main impact of these tariffs is that they will affect demand in the short term as consumers wait for a deal on trade. 

Most companies in the TSX Composite index crashed. Celestica stock plunged by 12.9% on Monday, bringing the weekly loss to 21.16%. Celestica offers numerous products, mostly to countries like Thailand and Malaysia. 

The other top laggards in the TSX Composite Index were companies like Veren, Nexgen Energy, Interfor, Vermillion Energy, and Baytex Energy. These energy companies plunged because Trump’s tariffs on Canadian energy will make it more expensive than those in the United States.

TSX Composite Index analysis

TSX chart by TradingView

The daily chart shows that the TSX Composite index has pulled back in the past few months. It has formed a double-top pattern at C$25,825. A double-top is one of the most popular bearish sign in the market.

The neckline of this pattern is at $24,255, its lowest level on December 20, the 23.6% Fibonacci Retracement level. It has moved below the 50-day Exponential Moving Average (EMA).

Also, the Relative Strength Index (RSI) and the MACD indicators have pointed downwards. Therefore, the TSX Composite will likely have a bearish breakdown, with the next target being at $24,256, the neckline and the 23.6% retracement point. More gains will be confirmed if it rises above the all-time high of $25,825.

The post TSX Composite analysis as Canada bond yields, Loonie crash appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Grindr stock analysis: why is it beating Bumble and Match Group?
next post
Here’s why China has pledged to fix overproduction in steel and fuel

Related Posts

Caterpillar stock forecast 2025: A 25% crash can’t...

December 26, 2024

European Lithium Limited (ASX: EUR) – Trading Halt

February 10, 2024

Top CAC 40 shares to watch: Accor, Airbus,...

February 14, 2025

Snap stock price at critical juncture: will it...

April 28, 2025

Citi ditches Visa for Mastercard amid DOJ antitrust...

September 25, 2024

Stoxx 50 index forms bullish pattern ahead of...

March 29, 2025

HBAR price analysis: What next for Hedera amid...

August 18, 2025

USD/ZAR forms a pennant: is the South African...

December 9, 2024

Canadian Critical Minerals

May 24, 2024

Dollar index: US dollar outlook ahead of nonfarm...

December 6, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,753)
    • Investing (2,776)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved