On Wednesday, the TSX climbed to 20,618.47, its highest level since mid-September, as heightened U.S. inflation data and rising energy prices sent the global mining sector rocketing up. Technology also gained ground as investors sensed a return to pre-pandemic growth levels.

Among Wednesday’s largest gainers on the TSX, Eldorado Gold rose by 9.3 per cent, while Blackberry climbed 4.7 per cent.

The U.S. consumer price index rose by 5.4 per cent since last October, while the core price index, which excludes food and energy, rose 4 per cent from this time last year.

In Europe, where the energy crisis is particularly acute, natural gas futures fell more than 23 per cent early Thursday, pointing to presently untenable fuel costs as demand surges and companies are forced to curtail production.

The Canadian economy appears to be heating up in tow, adding 157,000 new jobs in September, pushing employment numbers past early-2020 highs. Couple that with a 4.1 per cent rise in August inflation, the highest one-month move since 2003, and the scene appears to be set for Canadians to tighten their belts, at least over the short term.

Always the moderating force, Bank of Canada Governor Tiff Macklem struck a note of calm last week on rising food, vehicle and housing prices, assuring Canadians that economic metrics compared to 2020 lows can’t help but seem excessive.

While bears like David Rosenberg are signalling an imminent recession in Canada – citing labour shortages, pandemic concerns and the aforementioned energy shortages – Macklem sees inflation normalizing in 2022 as pent-up demand for goods and services is met with more supply chains resuming normal operations.

Market movers

As the TSX continues its upward trend, up just over 1 per cent as of 1:35 pm ET, investors continue to allocate to metals and energy to capitalize on inflation’s recent volatility.

Standouts include NextGen Energy, which is up 8.5 per cent, and B2Gold, which is up 6.8 per cent halfway through the trading day.

Canadian small caps making their presence felt amidst the global recovery highlight opportunities beyond, as well as in line, with the current macro outlook.

Rock Tech Lithium is planning to build Europe’s first lithium converter in Brandenburg Germany.

Fobi recently announced an agreement to integrate its Passcreator platform into Empower Clinics’ Kai Care COVID-19 testing platform, enabling customers to receive test results to their mobile wallets in a safe and secure format.

In health care news, Vaxil Bio‘s anti-cancer drug, E-selectin (P-Esbp), has shown encouraging results in an experiment with mice.

Defence Therapeutics also announced strong in vitro results with its Accum anti-cancer therapeutic.

Companies announcing capital raises this week include:

Razor Energy, a junior oil and gas company focused on properties in Alberta. The company announced subscription agreements and a proposed private placement for gross proceeds of $2.2 million.

XORTX Therapeutics (zortex), an Albertan pharmaceutical company focused on products to treat kidney disease, COVID-19 and type 2 diabetic nephropathy. It recently started trading on the Nasdaq Capital Market in conjunction with a US$12 million public offering.

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