Canada’s main stock index closed slightly higher Thursday, thanks to gains in marijuana producers and material stocks on the back of rising gold and metal prices.
At the close, the Toronto Stock Exchange’s S&P/TSX Composite Index up 11.76 points, or 0.08 per cent, at 15,144.88.
The health care sector was the biggest gained, up 2 per cent as Aurora Cannabis rose 7.2 per cent, Aphria gained 7.1 per cent and Canopy was up 2.9 per cent.
The materials sector gained 0.9 per cent as metals prices, in particular gold, rose. First Quantam gained 7.9 per cent, Teck Resources was up 3.6 per cent and Barrick Gold gained 1.5 per cent.
Gold hit a near one-week peak on Thursday as investors sought cover from market turmoil after Britain’s long-awaited draft agreement to leave the European Union was thrown into chaos. Spot gold was up 0.3 per cent at US$1,214.79 per ounce after touching its highest since Nov. 9 at US$1,216.27 earlier in the session and moving away from a one-month low of US$1,195.90 hit on Tuesday. U.S. gold futures settled up US$4.90, or 0.40 per cent, at US$1,215 per ounce.
Zinc rallied, supported by sliding stockpiles and signs China may be taking steps to de-escalate its trade dispute with the United States.
The energy sector fell 0.3 per cent even as many big stocks rose. Vermilion Energy gained 2 per cent and Imperial Oil was up 1.2 per cent. Canadian Natural Resources fell 1.7 per cent and Encana fell 0.6 per cent.
Oil futures rose, steadying after this week’s steep losses as fuel stockpile declines in the United States helped offset concerns about a potentially oversupplied market next year. Brent crude futures gained 70 cents US to US$66.82 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 39 cents US to US$56.64 a barrel.
Consumer discretionary stocks slid 1.3 per cent as HBC fell 3.5 per cent, Dollarama was down 2.7 per cent and Canadian Tire was off 1.5 per cent.
Consumer staples stocks slid 0.6 per cent with Premium Brands falling 3.4 per cent and Alimentation Couche-Tard down 1.9 per cent.
Sentiment was also lifted after Prime Minister Justin Trudeau said Canada and China will continue to work together towards an “eventual” free trade deal despite the country’s allegiance to the North American Free Trade Agreement (NAFTA), renamed the U.S.-Mexico-Canada Agreement (USMCA).
U.S. stocks rose on Thursday after a news report that further U.S. tariffs on Chinese imports would be paused spurred optimism that the two countries could resolve their trade dispute.
Wall Street’s major indexes rose on the Financial Times article that U.S. Trade Representative Lighthizer told a group of industry executives the next tranche of tariffs on Chinese imports has been put on hold.
A spokesperson for Mr. Lighthizer, however, denied the report.
Based on the latest available data, the Dow Jones Industrial Average rose 208.84 points, or 0.83 per cent, to 25,289.34, the S&P 500 gained 28.69 points, or 1.06 per cent, to 2,730.27 and the Nasdaq Composite added 122.64 points, or 1.72 per cent, to 7,259.03.
After five days of losses, shares of Apple Inc also gained 2.5 per cent, helping the S&P 500 technology sector gain 2.5 percent.
“We’d be trading sideways for quite a while ... but we’ve rallied on that headline,” said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. “If we’re stopping imposing tariffs and are talking, it’s a positive.”
Earlier, the S&P 500 and the Dow had declined as disappointing results from retailers as well as a weak outlook from KB Home dragged down consumer discretionary stocks.
The Dow Jones Industrial Average rose 204.4 points, or 0.81 percent, to 25,284.9, the S&P 500 gained 25.47 points, or 0.94 percent, to 2,727.05 and the Nasdaq Composite added 118.65 points, or 1.66 percent, to 7,255.04.
Shares of Cisco Systems Inc. advanced 5.5 per cent after the network equipment maker’s quarterly revenue and earnings beat analyst estimates. Cisco was among the biggest boosts to the S&P 500 and the Nasdaq.
Department store operator Dillard’s Inc. tumbled 14.8 per cent after its third-quarter earnings missed analyst estimates. Likewise, its peer J.C. Penney Co Inc reported same-store sales below analyst expectations.
The gloomy results from Dillard’s and J.C. Penney also cast a pall over Walmart Inc. shares, which fell 2 per cent despite the world’s largest retailer beating same-store sales estimates and raising its full-year outlook.
J.C. Penney shares, however, shed earlier losses to climb 11.5 percent after Chief Executive Officer Jill Soltau gave indications of her plans to turn a profit.
KB Home slumped 15.3 per cent after the company cut its fourth-quarter revenue forecast. Shares of other homebuilders, including PulteGroup Inc., Toll Brothers Inc. and Lennar Corp., also fell.
Shares of PG&E Corp extended their losing streak to a sixth day, hitting a 15-year low of $17.71 after the utility company warned that it could face liability in excess of its insurance if its equipment caused the deadly Camp Fire in northern California. PG&E shares were last down 30.7 per cent.
Reuters