Canada's main stock index rose on Tuesday as the energy sector jumped nearly 4% on signs of improving crude oil demand, while sentiment was also bolstered by a record increase in U.S. retail sales and prospects of more economic stimulus.
The S&P/TSX Composite Index popped 248.77 points, or 1.6%, to 15,608.43.
The Canadian dollar sank 0.28 cents at 73.59 cents U.S.
Shawcor led the parade, with a leap of 31 cents, or 9.7%, to $3.51, followed by Pason Systems, which rose 91 cents, or 12.5%, to $8.19.
Silvercorp Metals fell 16 cents, or 2.4%, to $6.41. The next biggest decliner was Alacer Gold, down 14 cents, or 1.7%, to $8.08.
On the economic beat, Statistics Canada said foreign investment in Canadian securities reached a record-high of $49 billion in April, all in debt securities.
Meanwhile, Canadian divestment in foreign securities eased considerably to $134 million.
ON BAYSTREET
The TSX Venture Exchange remained buoyant 3.46 points to 563.28.
All but two of the 12 TSX subgroups stayed in positive territory by Tuesday noon, with health-care haler by 3.5%, energy gushing 3.1%, and industrials, up 2.2%.
The two laggards were gold, down 1.3%, and materials, off 0.3%.
ON WALLSTREET
Stocks rose on Tuesday as a record jump in retail sales — coupled with positive trial results from a potential coronavirus treatment and hopes of more stimulus — sent market sentiment soaring.
The Dow Jones Industrials skyrocketed 563.58 points, or 2.2%, to 26,326.74.
The S&P 500 soared 61.1 points, or 2%, to 3,127.69.
The NASDAQ leaped 173.35 points, or 1.8%, to 9,898.70.
The U.S. government reported a record 17.7% increase in retail sales for May. Economists polled by Dow Jones expected a gain of 7.7%.
Meanwhile, multiple reports said dexamethasone — a widely available drug — can help critically-ill cornavirus patients. The treatment reportedly reduced COVID-19 deaths in hospitalized patients by up to one third.
Shares of companies that would benefit from the economy reopening led the gains. United, Delta and American Airlines all rose at least 0.6%. Norwegian Cruise Line, Carnival and Royal Caribbean jumped more than 1.8% each. MGM Resorts moved higher 1.4%, Kohl’s gained 7.9%, and Simon Property advanced 2.5%.
Sentiment was also lifted after reports the Trump administration is drawing up a $1-trillion infrastructure proposal.
The reports said a preliminary version being prepared would set aside the majority of the money for traditional infrastructure projects such as roads and bridges, though funds would also be reserved for 5G wireless infrastructure and rural broadband.
Prices for the 10-Year Treasury dropped, boosting yields to 0.75% from Monday’s 0.71%. Treasury prices and yields move in opposite directions.
Oil prices nicked ahead 10 cents to $37.22 U.S. a barrel.
Gold prices advanced $5.70 to $1,732.90 U.S. an ounce.
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