Canadian stocks opened nearly unchanged Thursday as technology gains offset losses in mining and financial shares, while investors watched rising bond yields and another volatile session for oil.

The S&P/TSX composite index was down 0.03 per cent at 35,201.15 shortly after trading began.

The subdued opening followed a difficult September for the Canadian benchmark. The TSX fell 2.9 per cent during the month, ending a five-month winning streak as higher borrowing costs, commodity-price swings and Canada-U.S. trade tensions weighed on investor confidence.

Pressure has come partly from a global government bond selloff. Bond prices fall when yields rise.

The yield on the benchmark 10-year U.S. Treasury reached 5.34 per cent Thursday, its highest level since 2002. The yield increased by almost 0.9 percentage points during the third quarter, its largest quarterly increase this century.

Government borrowing costs have also reached multi-decade highs in several European and Asian markets.

Canada has not been isolated from the increase. The Bank of Canada’s latest available figures showed the average yield on Government of Canada bonds with maturities longer than 10 years increased to 4.25 per cent on Sept. 29, up from 4.20 per cent one day earlier.

Higher bond yields can flow through to mortgage rates, business loans and government borrowing costs. They can also make bonds more competitive with dividend-paying stocks, placing pressure on some financial, utility and real-estate shares.

Energy prices have added another layer of uncertainty.

West Texas Intermediate crude traded at US$90.79 a barrel Thursday, up 0.4 per cent after falling by more than one per cent earlier in the session and briefly approaching US$93.

Brent crude rose 1.8 per cent to US$99.77 a barrel. The previous front-month contract had settled at US$103.50 Wednesday after gaining about 14 per cent during September.

Oil prices have been moving sharply as markets assess Middle East supply risks, diplomatic efforts involving the United States and Iran and the availability of diesel and other refined fuels.

Prices received additional support Thursday after Chinese refiners suspended fuel exports beyond Hong Kong and Macau. The move could tighten global fuel supplies already affected by reduced refining capacity and conflict-related disruptions.

The effects are mixed for Alberta.

Higher oil prices can support producer revenue, drilling activity and provincial royalties. However, unstable prices make investment and budgeting more difficult, while higher fuel costs can increase expenses for farmers, trucking companies and other rural businesses.

Oil-driven inflation can also keep interest rates and bond yields elevated. That would increase financing costs for farms, businesses, municipalities and households even if stronger crude prices benefit Alberta’s energy sector.

The TSX entered October with technology shares providing some support, but losses in mining and financial stocks showed that investors remained cautious.