Canada’s main stock index rose on Tuesday, as financial stocks gained amid stronger-than-expected gain in March wholesale trade and energy shares got a boost from rising oil price.
At 12:05 p.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 54.72 points, or 0.34 per cent, at 16,217.03.
Eight of the index’s eleven major sectors were higher, getting the biggest boost from the financial sector’s 0.4 per cent gain.
Statistics Canada said Canadian wholesale trade rose 1.1 per cent in March, the largest month-on-month rise for five months, aided by strength in the motor vehicle and parts subsector.
Brent Crude oil price rose, supported by concern that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply. The TSX energy sector climbed 1.0 per cent.
The Canadian dollar edged higher against its U.S. counterpart on higher oil prices and the wholesale trade data The materials sector, which includes miners, added 0.5 per cent as gold prices edged up on Tuesday from a 2018 low as the U.S. dollar fell from its five-month high.
On the TSX, 179 issues were higher, while 60 issues declined for a 2.98-to-1 ratio favoring gainers, with 14.32 million shares traded.
The largest percentage gainers were Aurora Cannabis , which jumped 6.2 per cent after it made a strategic investment in CTT Pharmaceutical and Canopy Growth Co. Shares of Canopy Growth rose 4.1 per cent.
Cameco Corp fell 6.8 per cent, the most on the TSX.
The second biggest decliner was e-commerce software maker Shopify Inc, which fell 4.9 per cent after Adobe Systems Inc announced it was buying rival Magento Commerce.
The most heavily traded shares by volume were Aurora Cannabis, Canopy Growth and Bombardier Inc.
The TSX posted 13 new 52-week highs and no new lows.
Across all Canadian issues there were 47 new 52-week highs and nine new lows, with total volume of 24.93 million shares.
U.S. Treasury Secretary Steven Mnuchin said on Monday major issues remained in talks between the United States, Mexico and Canada to renegotiate the NAFTA deal.
Global stocks were mixed on Tuesday as Wall Street investors locked in recent gains while European shares approached four-month peaks as pressure eased on Italy’s debt markets and as China moved to further open up its economy.
Washington neared an agreement to lift its ban on U.S. firms supplying to Chinese telecoms gear maker ZTE Corp, sources said, while Beijing said it would steeply cut import tariffs for automobiles and car parts.
That boosted auto stocks, with Ford, General Motors, and U.S.-listed shares of Fiat up between 1 per cent and 2.4 per cent.
Europe’s big carmakers Volkswagen, BMW and Daimler jumped 1 to 1.6 per cent too.
The Dow Jones Industrial Average fell 9.25 points, or 0.04 per cent, to 25,004.04, the S&P 500 gained 6.02 points, or 0.22 per cent, to 2,739.03 and the Nasdaq Composite added 13.49 points, or 0.18 per cent, to 7,407.52.lost 0.18
“The market is taking very well to what appears to be the fact that (President Donald) Trump is able to manoeuvre the trade talks in our favour,” said Andre Bakhos, managing director at New Jersey-based Janlyn Capital LLC, of the mostly upbeat tone. “We’re seeing a continuation of that positive momentum.”
Early European trading saw Italian government bond yields come off 14-month highs, after six days of heavy selling on concerns over high-spending policies mooted by a potential new ruling coalition.
The proposed tie-up of the anti-establishment 5-Star Movement and the far-right League has pushed Rome’s 10-year yields up nearly 70 basis points since the start of the month.
MSCI’s gauge of stocks across the globe gained 0.36 per cent, while the pan-European FTSEurofirst 300 index rose 0.46 per cent.
Oil jumped to $80 a barrel, its highest since late 2014, on expectations Venezuelan crude output and a possible reduction in Iranian exports could further curb global supply.
U.S. crude rose 0.64 per cent to $72.70 per barrel and Brent was last at $80.25, up 1.3 per cent.
After six days of gains, the U.S. dollar retreated as Treasury yields dipped and investors sought incentives to buy after a 7 per cent rally since mid-February.
The dollar index, tracking it against a basket of major currencies, was down 0.1 per cent at 93.584. It was on track for its largest daily loss in two weeks.
Gold steadied as the dollar lost momentum, but risk appetite in the broader financial market cooled the metal’s gains.
Reuters