Equity markets in Canada’s biggest market hit their highest level in more than 20 months on the first trading day of 2017, as a jump in oil prices helped energy stocks lead a broad-based gain.
The S&P/TSX Composite gained 73.79 points – off its lows of the morning -- to greet the year’s first noon time at 15,361.38. The index earlier touched 15,450.27, its highest since April 27, 2015.
The Canadian dollar poked up 0.1 cents to 74.48 cents U.S.
Canadian equity markets were closed Monday for New Year’s Day
The most influential movers on the index included Suncor Energy, which rose 1.9% to $44.74, and Canadian Natural Resources, which advanced 2.8% to $43.97. Encana Corp gained 3.4% to $16.30.
The energy group climbed, as oil prices were buoyed by hopes that a deal between the Organization of the Petroleum Exporting Countries and other big oil exporters to cut production, which kicked in on Sunday, will drain a global supply glut.
The heavyweight financials group gained, with Royal Bank of Canada up 1% at $91.80 and Bank of Nova Scotia advancing 0.9% to $75.41.
Among gold stocks, Goldcorp advanced 3% to $18.82 and Potash Corp rose 1.4% to $24.62.
On the economic slate, the Markit Manufacturing Purchasing Managers’ Index rose in December to 51.8, led by stronger new order growth, stronger than November's 51.5. The latest reading was the strongest since July and well above the survey-record low of 47.5 seen in December 2015
ON BAYSTREET
The TSX Venture Exchange roared ahead 8.13 points, or 1.1%, to 770.5
Eight of the 12 TSX subgroups were higher, with gold up 2.4%, materials ahead 1.5%, and telecoms up 0.7%.
The four laggards were weighed most by real-estate and utilities, each down 0.3%, and consumer staples, off 0.2%.
ON WALLSTREET
Stocks rose on Tuesday, the first trading day of 2017, but came off their session highs as oil prices gave back some of their initial gains.
The Dow Jones Industrials eased off its highs of the morning, but remained positive 45.74 points to 19,808.34, with Goldman Sachs contributing the most gains.
The S&P 500 picked up 10.61 points to 2,249.54, with telecommunications leading advancers
The NASDAQ composite index stayed positive 23.67 points to 5,406.38
In corporate news, President-elect Donald Trump attacked General Motors in a tweet, claiming the auto giant is making a Chevy Cruze model in Mexico and then sending them to U.S. dealers tax-free. GM later responded by saying that most of its Cruze models are in fact built in the U.S.
In economic news, the final read on December IHS Markit manufacturing PMI came in at 54.3, hitting a 21-month high. A number above 50 signals expansion, while a number below 50 shows contraction. The ISM manufacturing index read for December and November construction spending were also due at 10 a.m. ET.
China's Caixin Manufacturing Purchasing Managers' index (PMI) rose to 51.9, compared with 50.9 in November and beating forecasts for 50.7, on the back of increased demand.
Prices for the benchmark 10-year Treasury note gained ground, lowering yields to 2.47% from Thursday’s 2.48%. Treasury prices and yields move in opposite directions. Bond markets were closed Friday.
Oil prices moved lower 81 cents to $52.91 U.S. a barrel
Gold prices spiked $10.10 to $1,161.80 U.S. an ounce.
