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Canada’s main stock index – down by 0.37 per cent as of 2:47 pm ET – is responding to a confluence of factors as Q3 earnings roll in.

The day has seen a 1-per-cent decline in energy stocks as OPEC prepares to meet later this week. The organization is facing pressure to raise output levels as demand remains above 100 million barrels of oil per day.

Health care stocks suffered a similar decline as large players HEXO and Bausch (formerly Valeant) struggle to find their footing after their respective restructurings.

Canadian investors were also signaling caution ahead of the U.S. Federal Reserve meeting, which starts today, where officials are expected to step back from their US$120 billion monthly bond purchases keeping the economy on stable ground. That said, sentiment remains in favour of delaying a rise in interest rates to sometime in 2023.

TSX losses were cushioned by a jump in Air Canada shares, which announced upbeat third quarter earnings with revenue surpassing 2020 levels. The positive swing is well-needed as the severely indebted company could not have survived without its C$5.9 billion government bailout earlier this year.

Another positive development is Chifeng Jilong Gold’s agreement to purchase TSX-listed Golden Star Resources for US$470 million in cash. The Chinese company’s move can be viewed as a value play, as the materials sector is currently experiencing pandemic-related shortages due to high energy costs. Chifeng’s large capital base and proven track record bode well in terms of overcoming headwinds until market conditions improve.

In other business news this week, the dispute over the rightful Board of Directors of Rogers Communications has headed to British Columbia’s Supreme Court, right as it’s trying to close a planned C$20-billion takeover of Shaw Communications.

The rift between Edward Rogers, who controls 97.5 per cent of the company’s voting shares, and his mother and sisters, who view his attempted ousting of CEO Joe Natale, as well as Masai Ujiri, as a reckless affront to good governance, will reach its climax with a ruling this Friday.

Market movers

Companies catching the eyes of Market Herald Canada readers over the past two days include:

Group Ten Metals, which released the first independent NI 43-101 mineral resource estimate for its Stillwater West Project in Montana.

Alianza Minerals, which reported additional results from its 2021 drilling campaign at the Haldane high-grade silver property.

And Datametrex, whose subsidiary, Medi-Call MD, recently launched in-person patient care services in Vancouver.

New capital raises this week include Hanstone Gold and Gold Bull Resources. Meanwhile, Green River Gold and Consolidated Uranium have both been able to upsize existing private placements.

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