Canada’s main stock index rose slightly on Tuesday, driven by gains in shares of healthcare and material companies.
Better results announced by drugmaker Bausch Health Companies Inc. lifted healthcare stocks, while materials companies rose on the back of higher metal and gold prices.
At 11:58 a.m. ET, the Toronto Stock Exchange’s S&P/TSX Composite index was up 12.59 points, or 0.08 per cent, at 15,230.29. Just five of the index’s 11 major sectors were higher.
The healthcare sector rose nearly 5 per cent, helped by a 5-per-cent rise in Bausch Health, after the company topped revenue expectations.
Marijuana producers also jumped, led by a 8.1-per-cent increase in Canopy Growth Corp. Aphria Inc. and Aurora Cannabis Inc. were both up 5.2 per cent.
Gold prices rose after investors sought shelter from uncertainty over the outcome of the U.S. midterm elections, helping the materials sector, which include precious and base metals miners, added 0.4 per cent.
Also helping materials stocks were shares of fertilizer and farm supplies dealer Nutrien Ltd, which rose 4.7 per cent, after reporting quarterly profit beat and raising its full-year earnings target, driven by strong demand for its potash fertilizers.
Copper prices steadied as the market waited for the result of the U.S. midterm elections and a monetary policy meeting of the U.S. Federal Reserve later this week.
Investors also looked at data from Statistics Canada, which showed the value of Canadian building permits increased by 0.4 per cent in September from August.
Great Canadian Gaming Corp jumped 11.2 per cent after reporting quarterly results. Maxar Technologies Ltd. rose 2 per cent after signing a contract extension with the U.S. National Reconnaissance Office.
U.S. stocks rose on Tuesday, as strong earnings and easing of trade tensions lifted materials and industrial sectors, but trading volumes were light as uncertainty about the outcome of U.S. midterm elections kept investors on the sidelines.
Financial markets are bracing for President Donald Trump’s Republican party losing control of the House of Representatives, while retaining the Senate.
A political gridlock between the White House and Congress could hinder Trump’s pro-business agenda and raise concerns about political instability, but most analysts say this may not be the worst outcome for the stock market.
Many fear that there could be a sharp selloff in the market if the Democrats sweep both the House and the Senate. In contrast, stocks may rally on hopes of more tax cuts if Republicans retain control of the House.
“People are trying to figure out how to position for the mid-term election outcome here. The general view is that the outcome is predictable ... the gridlock is somewhat positive and more predictive for markets going forward,” said Charlie Ripley, senior market strategist for Allianz Investment Management.
“If we see something that deviates, either a Democratic or a Republican sweep, we will see that play out tomorrow and through the rest of the week.”
Ten of the 11 major S&P sectors were higher, led by a 1 percent gain in the materials index.
Shares of fertilizer company Mosaic Co and lithium producer FMC Corp rose 7 percent and 3.8 percent, respectively, on strong results.
Trade-sensitive industrial sector rose 0.96 percent after Chinese Vice President Wang Qishan said Beijing was ready to hold discussions and work with the United States to resolve trade disputes.
At 11:58 a.m. EDT the Dow Jones Industrial Average was up 109.57 points, or 0.43 percent, at 25,571.27, the S&P 500 was up 9.14 points, or 0.33 percent, at 2,747.45 and the Nasdaq Composite was up 30.51 points, or 0.42 percent, at 7,359.36.
Among stocks, Mylan NV jumped 15.5 percent after the drugmaker beat analysts’ estimates for third-quarter profit.
Pharmacy chain CVS Health Corp was up about 4.6 percent after its quarterly profit beat analysts’ estimates on higher sales of prescription drugs and consumer health and beauty products.
Oil prices fell on Tuesday, with U.S. crude futures sliding to a seven-month low a day after Washington granted sanction waivers to top buyers of Iranian oil, as Iran said it had so far been able to sell as much oil as it needs to sell.
Brent crude futures dropped 96 cents, or 1.3 percent, to $72.21 a barrel. The global benchmark hit a session low of $71.85 a barrel, lowest since Aug. 20.
U.S. West Texas Intermediate (WTI) crude futures fell 82 cents, or 1.3 per cent, to $62.28 a barrel. The session low was $61.96 a barrel, its weakest since April 9.
Iran said it had so far been able to sell as much oil as it needs and urged European countries opposed to U.S. sanctions to do more to shield Iran.
The United States on Monday restored sanctions targeting Iran’s oil, banking and transport sectors and threatened more action. U.S. Treasury Secretary Steven Mnuchin said Washington aimed to bring Iranian oil exports to zero, but 180-day exemptions were granted to eight importers: China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey.
This group takes as much as three-quarters of Iran’s seaborne oil exports, trade data shows, meaning the Islamic Republic will still be allowed to export some oil for now.
Industry estimates suggest Iran’s oil exports have fallen 40-60 percent since Trump said in May he would reimpose sanctions. However, exemptions could allow exports to rise again after November.
Turkish President Tayyip Erdogan said the country, a top importer of Iranian oil, would not abide by the sanctions, which he said were aimed at “unbalancing the world.”
Reuters