Canada's benchmark index rose on Tuesday with technology stocks and miners leading gains, while investors awaited key central bank decisions this week for clues on the monetary policy outlook in Canada and the U.S. as tensions in the Middle East raged on.
The TSX came off its highs of the morning Tuesday, but was still above water 245.73 points, to move into noon hour EDT at 33,122.38
The dollar inched down 0.08 cents to 72.98 cents U.S.
Oil prices rose 4% as fresh attacks by Iran on the United Arab Emirates rekindled supply fears amid continued shipping disruptions through the crucial Strait of Hormuz.
U.S. allies refused President Donald Trump's Monday appeal to dispatch warships to the waterway, a critical gateway for one-fifth of the world's oil and LNG trade.
With inflation fears mounting, and the war complicating rate-cut expectations, markets will closely monitor the U.S. Federal Reserve's two-day meeting, which kicks off on Tuesday, along with signals from the Bank of Canada.
ON BAYSTREET
The TSX Venture Exchange remained positive 6.8 points to 1,018.97.
All 12 TSX subgroups gained ground, led by information technology, leaping 2%, real-estate, rallying 1.3%, and health-care, haler by 1.2%.
ON WALLSTREET
The S&P 500 rose on Tuesday as Wall Street built on the momentum seen in the previous session amid developments in the Iran war.
The Dow Jones Industrials was still prosperous 235.58 points to 47,181.99.
The much broader index acquired 29.84 points to 6,729.22.
The NASDAQ held onto 96.82 points to 22,471.
Energy companies and ETFs are reaching new highs as the U.S.-Iran war continues. APA gained $1.39, or 4%, to $35.93, and BP jumped $1.25, or 2.9%, to $44.15, while ConocoPhillips collected $2.06, or 1.7%, to $123.35, Coterra Energy advanced 44 cents, or 1.4%, to $32.81, and Devon Energy rose by 52 cents, or 1.1%, to $47.18.
Volatile oil prices and the fallout of the Iran war continue to influence investor sentiment. On Tuesday morning, oil prices advanced more than 1%, with global benchmark Brent crude above the $100 mark.
Oil’s bounce came after President Donald Trump suggested that a coalition to protect shipping along the Strait of Hormuz is still in the works.
Trump told reporters Monday that some countries are “less than enthusiastic” about a plan to help escort oil tankers through the Strait of Hormuz. The president encouraged other nations to “get involved quickly and with great enthusiasm.”
Bank of America reiterated Tuesday its buy rating on German software stock SAP, citing its “defensive business profile,” per its analysts’ new note to clients. SAP shares dipped six cents to $191.57.
Prices for the 10-year Treasury climbed, lowering yields to 4.20% from Monday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices pointed higher $1.36 to $94.86 U.S. a barrel.
Gold prices gained $13.80 to $5,016 U.S. an ounce.
