Equity markets in Canada’s largest centre edged higher on Tuesday with firmer commodity prices lifting gold and oil shares as the market mood calmed after a sharp selloff in U.S. markets in recent sessions had hit investor sentiment.
The S&P/TSX composite index strengthened 46.27 points to greet noon Tuesday at 14,316.60
The benchmark index, which is up about 5% in 2014, has outperformed Wall Street's S&P 500 index so far this year.
The Canadian dollar surged 0.39 cents at 91.54 cents U.S., due in part to the Quebec Liberal Party sweeping back into power following Monday’s provincial election.
Financials were up slightly. Bank of Montreal climbed 0.6% to $74.92.
Shares of gold producers rose. Goldcorp added 1% to $27.44, and Barrick Gold Corp was up 0.9%, at $20.32.
The energy sector benefited from higher oil prices. Suncor Energy Inc advanced 2.4% to $39.97, and Canadian Natural Resources Ltd rose 0.9% to $43.68.
In the economic realm, Statistics Canada reported that municipalities issued building permits worth $6.1 billion in February, down 11.6% from January, following an 8.1% gain the previous month. This decrease was mainly driven by lower construction intentions for multi-family dwellings throughout the country.
What’s more, Canada Mortgage and Housing Corporation reported this morning that housing starts in Canada were trending at 184,476 units in March compared to 191,126 in February – a drop of 3.5%.
ON BAYSTREET
The TSX Venture Exchange dipped 1.08 points to 995.89
All but three of the 14 Toronto subgroups were higher, with metals and mining surging 2.4%, global base metals improving 1.6%, and energy gushing 1%.
The three laggards were weighed by health-care, off 0.8%, while telecoms and consumer staples each shed 0.2%.
ON WALLSTREET
An early advance on Wall Street gained momentum Tuesday noon, after a recent slide.
The Dow Jones Industrial Average advanced 38.04 points to 16,283.91. The S&P 500 forged ahead 6.24 points to 1,851.28. The NASDAQ remained positive 27.86 points to 4,107.61
Investors have been worried about stock valuations ahead of what is expected to be lackluster quarter for corporate earnings. The technology sector has been hit particularly hard, but investors were dipping a toe back into the sector after three days of heavy selling.
Shares of Facebook, Netflix and Amazon all held gains despite the overall weakness. Yelp, the restaurant and business review site, is also having a strong rebound today despite struggling this year.
The materials sector was also relatively strong. Shares of natural gas companies Peabody Energy and CONSOL Energy led the S&P 500 as the top gainers of the morning. Joy Global, which makes heavy mining equipment, gained as well.
But the broader market was dragged lower by weakness in the healthcare sector. Shares of drug-makers Mylan, Gilead Sciences,Forest Laboratories were all down sharply.
As investors fled more risky corners of the market, shares of companies that are considered defensive investments rallied. Makers of consumer staples, such as Kraft, Procter & Gamble and Colgate Palmolive, have been popular safe harbours in recent days.
In corporate news today, Alcoa will report first-quarter results after the closing bell, the first major company to do so.
Prices for 10-year U.S. Treasuries slid, raising yields to 2.71% from Monday’s 2.70%. Treasury prices and yields move in opposite directions.
Oil prices gained 93 cents to $101.37 U.S. a barrel.
Gold prices hiked $10.90 to $1,309.20 U.S. an ounce.
