Gains in crude prices were offset Monday by falling industrial stocks including railways and slips among financial and materials stocks, as Canada’s main stock index sank briefly into the red.
The S&P/TSX Composite dropped 1.09 points to greet noon at 15,311.11
The Canadian dollar added 0.23 cents to 76.1 cents U.S.
The energy group, which accounts for more than a fifth of the index's weight, climbed as oil prices hit an 18-month high after the Organization of the Petroleum Exporting Countries and some of its rivals agreed to jointly reduce output to tackle global oversupply and boost prices.
Most the 20 most influential movers on the index were energy stocks, included its biggest oil and gas producers, with Canadian Natural Resources up 4.1% at $45.77 and Suncor Energy Inc adding 2.2% to $43.91.
Cenovus Energy, which last week said it would up its capital spending and resume work on an oil sands project in 2017, advanced 5.9% to $21.88.
Canadian National Railway fell 2.7% to $89.14 and rival Canadian Pacific Railway lost 2.4% to $200.84.
The materials group, which includes precious and base metals miners and fertilizer companies, lost ground as Potash Corp fell 2.7% to $25.35 and Agrium Inc lost 2.3% to $140.64.
The two companies plan to merge as the sector struggles with weak prices.
ON BAYSTREET
The TSX Venture Exchange stayed positive 4.6 points to 753.40
Seven of the 12 TSX subgroups were better by noon as energy soared 1.7%, gold improved 0.7%, and information technology moved higher 0.6%.
The five laggards were weighed most by industrials, sinking 1.9%, consumer discretionary stocks, falling 0.5%, and financials, hesitating 0.3%.
ON WALLSTREET
U.S. equities traded mixed on Monday as Treasury yields spiked ahead of a key Federal Reserve meeting while oil prices soared on an output deal between OPEC and non-OPEC countries.
The Dow Jones Industrials added to Friday’s all-time high, strengthening 5.76 points to 19,762.61, with ExxonMobil leading advancers and American Express the biggest decliner.
The S&P 500 slid 6.17 points to 2,253.32, with consumer discretionary leading four sectors lower and energy leading advancers.
The NASDAQ composite index tumbled 46.15 points to 5,398.35
In corporate news, shares of Lockheed Martin fell more than 3% in late-morning trade after President-Elect Donald Trump said in a tweet the F-35 program was too expensive. Meanwhile, the proposed merger between CBS and Viacom was withdrawn by Shari Redstone, the vice chair of the board for both companies.
After nearly a year of wrangling, OPEC agreed on Nov. 30 to cut output by 1.2 million barrels per day for six months from Jan. 1, with top exporter Saudi Arabia cutting around 486,000 barrels per day to curb the oversupply that has dogged markets for two years.
On Saturday, producers from outside OPEC, led by Russia, agreed to reduce output by 558,000 barrels per day, short of the target of 600,000 barrels per day but still the largest contribution by non-OPEC members ever.
Treasury prices for the 10-year note gained ground, lowering yields to Friday’s 2.47%. Treasury prices and yields move in opposite directions.
Oil prices strengthened $1.59 to $53.09 U.S. a barrel
Gold prices climbed $3.30 to $1,165.20 U.S. an ounce.
