TORONTO — Canada’s main stock index closed higher Tuesday despite a big fall in oil prices, a day after a U.S. market hit a record high on weekend China trade movements.
The S&P/TSX composite index gained 89.09 points to 16,471.29 in trading after the Canada Day holiday. That’s just one per cent short of the all−time high set in April.
“I think it probably is a bit of a catch up from yesterday,” says Michael Currie, vice−president and investment adviser at TD Wealth. “It certainly didn’t go up as much as New York did but still a positive day.”
U.S. stock markets rose Monday with the S&P 500 hitting an intraday record high in reaction to U.S. President Donald Trump and Chinese President Xi Jinping agreeing at a G20 meeting not to impose new tariffs as trade talks resume.
American markets closed slightly higher on Tuesday as the positive reaction to Chinese trade advances gave way to negative reaction concerning US$4 billion of tariffs being threatened by Trump on European goods.
In New York, the Dow Jones industrial average was up 69.25 points at 26,786.68. The S&P 500 index rose 8.68 points at 2,973.01 — a record high closing price — while the Nasdaq composite was up 17.93 points at 8,109,09.
“One day everyone’s happy because he’s (Trump) cut the tariffs on China, the next day everyone’s upset because he’s putting tariffs on Europe. So I guess the party’s only lasted one day,” said Currie.
The Canadian dollar traded for an average of 76.25 cents US compared with an average of 76.41 cents US on Friday.
Canadian manufacturing activity contracted for a third consecutive month and is at a 3.5−year low.
Seven of the 11 major sectors on the TSX closed higher, led by technology as Shopify Inc. was up almost four per cent.
Telecommunications and industrials closed higher as BRP Inc., CAE Inc. and Air Canada were each up more than two per cent. Heavyweight financials was up almost one percentage point with Home Capital Group Inc. rising 4.3 per cent while several banks and insurance companies also climbed.
Materials rose slightly as the August gold contract was up US$18.70 at US$1,408.00 an ounce and the September copper contract was down 2.4 cents at US$2.66 a pound.
Gold rebounded after suffering the worst daily decrease Monday in two−and−a−half years.
The biggest losers on the day were the energy and health care sectors.
Energy dropped with shares of Crescent Point Energy Corp. and Encana Corp. losing 6.7 and 3.1 per cent respectively as the price of crude fell despite OPEC and Russia agreeing to extend supply cuts until March due to concerns about slowing global demand.
The August crude contract was down US$2.84 at US$56.25 per barrel and the August natural gas contract was down 2.7 cents at US$2.24 per mmBTU.
“Oil prices of course are having a pretty good drop today so it’s funny that Toronto’s holding up as well as it is given the energy sector has turned pretty weak.”
Companies in this story: (TSX:DOO, TSX:CAE, TSX:AC, TSX:CPG, TSX:ECA, TSX:SHOP, TSX:HCG, TSX:GSPTSE, TSX:CADUSD=X)
Ross Marowits, The Canadian Press