Canadian dollar, Toronto stock index up moderately after Canada-U.S. trade deal

Canadian dollar, Toronto stock index up moderately after Canada-U.S. trade deal
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TORONTO — The Canada’s main stock market index and the dollar were up moderately in the first day of trading since Sunday’s tentative trade deal involving Canada, the U.S. and Mexico.

The S&P/TSX composite index was up 40.80 points at 16,113.94 as of 11 a.m. EDT. in a narrow advance led by the market’s health-care sector, energy sector and Canada’s three largest auto parts manufacturers.

Meanwhile, the Dow Jones industrial average was up 275.81 points at 26,734.12 and the S&P 500 composite index rose 20.97 points to 2,934.95. The Nasdaq composite advanced 43.69 points to 8,090.04.

The loonie was trading at 78.02 cents US, up from an average of 77.25 cents US on Friday.

The November crude contract was up 45 cents at US$73.70 per barrel and the November natural gas contract was up seven cents at US$3.08 per mmBTU.

The December gold contract was down $4.10 at US$1,192.10 an ounce and the December copper contract was down 2.7 cents at US$2.76 a pound.

Shares of Canada’s largest auto parts company, Magna International Inc., were up five per cent at $71.39, while Linamar Corp. was up nine per cent at $64.75 and Martinrea International Inc. was up 12 per cent at $14.80.

U.S. President Donald Trump had threatened to impose punishing auto tariffs on Canada if it didn’t reach an deal to replace the North American Free Trade Agreement.

As a side deal to the new pact, called U.S.-Mexico-Canada Trade Agreement, or USMCA, the Trump administration has agreed to exempt Canada if the United States imposes 25 per cent tariffs on imported vehicles and auto parts.

Shares of MEG Energy soared in early trading to as high as $11.70, surpassing Husky’s hostile bid of $11 per share cash-or-shares, before falling back to hover near an the bid level.

Husky shares were down $1.39 or about six per cent at $21.29 at about 11 a.m. EDT.

The Canadian Press

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