Canada’s main stock index rose on Tuesday, with energy stocks gaining as oil prices hit a 2016 high.
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The Toronto Stock Exchange’s S&P/TSX composite index unofficially closed up 89.93 points, or 0.66 percent, at 13,671.35.
John O’Connell, chairman and chief executive at Davis Rea Investment Counsel, said a weakened USA dollar coupled with higher commodity prices are the main reasons the currency – up more than two cents in the last three days – is enjoying its recent boost.
The most influential movers on the index included Barrick Gold Corp, which rose 6.5 percent to C$21.04 as gold rallied, and Canadian Pacific Railway Ltd, which advanced 2.6 percent to C$179.91.
Schwartz said Canadian bank stocks could rise further, given that the sector’s valuation has fallen sharply even though earnings rose about 6 percent past year.
Gold futures fell 0.1 per cent to $1,255.1 an ounce, while copper gained 1.3 per cent to $4,724 a tonne.
The materials group, which includes precious and base metals miners and fertilizer companies, added 3.4 percent despite losses for major fertilizer producers Potash Corp, off 1.4 percent to C$20.49, and Agrium Inc, down 0.4 percent at C$113.57.
Investors will focus on corporate earnings over the next several weeks, amid turbulent global markets and the uncertainty surrounding the U.S. Federal Reserve’s plan to raise interest rates.
A drop in oil prices also weighed on the loonie, as the May contract for benchmark North American crude edged down 41 cents to US$41.76 a barrel after closing above $42 Tuesday, its highest level since late November. China is also Canada’s second-biggest trading partner after the U.S.
The financials group gained 0.7 per cent, while industrials rose 1.1 per cent and consumer discretionary stocks were up 0.8 per cent.
NY markets were also solidly ahead for a second straight day, with the Dow Jones industrials soaring 187.03 points to 17,908.28, while the broader S&P 500 advanced 20.70 points to 2,082.42 and the Nasdaq composite jumped 75.33 points to 4,947.42.
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China’s exports in March returned to growth for the first time in nine months, jumping 11.5 percent from a year earlier.
