Canada’s main stock index rose on Thursday, gaining for the 10th straight session, led by the energy sector as oil prices hit $80 a barrel for the first time since November 2014.
At 11:30 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 64.48 points, or 0.4 per cent, at 16,172.32.
Brent crude prices hit a high of $80.18 per barrel on concerns that Iranian exports could fall because of renewed U.S. sanctions, reducing supply in an already tightening market.
Energy stocks climbed 1.2 per cent, led by Canadian Natural Resources Ltd., which rose 2.9 per cent. Vermilion Energy Inc. jumped 3.1 per cent, while Cenovus Energy Inc. was up 3 per cent.
Enbridge Inc. gained 1.1 per cent after the pipeline operator said it would bring its independent units and liquids and gas pipeline assets under a single listed entity.
The industrials sector gained 0.8 per cent, while the heavyweight financials sector slipped 0.1 per cent.
Aurora Cannabis Inc. fell 2.6 per cent in morning trading, while rival Canopy Growth Co. increased 2.5 per cent.
Uncertainty about NAFTA renegotiations is one of the reasons the Bank of Canada has kept interest rates low, because concern about U.S. trade policy is dragging down business investment, Deputy Governor Lawrence Schembri said on Wednesday.
The Canadian dollar retreated from near one-week high against the greenback as oil prices rose and investors weighed prospects of a deadline passing to reach a NAFTA trade pact deal.
U.S. stocks edged higher in morning trading Thursday, having shaken off an early stumble, as investors weighed the latest batch of company earnings news. Energy and industrial companies climbed, offsetting losses in banks and real estate companies. The price of crude oil rose. Bond prices fell, pushing yields higher.
The S&P 500 index rose 5 points, or 0.2 per cent, to 2,727 as of 11:18 a.m. Eastern Time. The Dow Jones industrial average gained 25 points, or 0.1 per cent, to 24,794. The Nasdaq composite added 15 points, or 0.2 per cent, to 7,414. The Russell 2000 index of smaller-company stocks picked up 10 points, or 0.7 per cent, to 1,626, a day after it closed at an all-time high. Two stocks rose for every one that fell on the New York Stock Exchange.
Williams Partners jumped 6 per cent to $40.72 after it agreed to be acquired by oil pipeline company Williams Cos. in an all-stock deal they valued at $10.5 billion.
Kroger climbed 3.1 per cent to $25.72 after the supermarket operator said it’s increasing its investment in the British online grocer Ocado as it fends off Amazon.com and other online threats to traditional grocers. The subscription rights agreement will give Kroger access to Ocado’s online ordering, automated fulfilment and home delivery technology in the U.S.
Dillard’s jumped 8.7 per cent to $78.26 after the department store chain’s latest quarterly results beat Wall Street’s expectations.
Cisco slid 2.8 per cent to $43.89 after the seller of routers, switches and software’s latest quarterly results disappointed investors. The slide in Cisco helped pull technology sector stocks lower.
J.C. Penney slumped 9.4 per cent to $2.78 after the struggling department store chain said it might take a loss in 2018 as it cut its annual forecast.
Wells Fargo fell 1.3 per cent to $54.33 after the Wall Street Journal reported that some employees in its business banking division improperly altered information on documents related to corporate customers.
Benchmark U.S. crude oil rose 34 cents to $71.83 a barrel in New York. Brent crude, used to price international oil, rose 86 cents, or 1.1 per cent, to $80.14 a barrel in London, its highest level since November 2014.
The rise in oil prices gave energy stocks a boost. Valero Energy gained 5.1 per cent to $120.90.
U.S. bond prices fell. The yield on the 10-year Treasury rose to 3.11 per cent from 3.10 per cent late Wednesday.
In Europe, Germany’s DAX gained 0.9 per cent, while France’s CAC 40 rose 0.8 per cent. Britain’s FTSE 100 added 0.6 per cent. Major indexes in Asia finished mostly lower. Japan’s Nikkei 225 index added 0.5 per cent. Hong Kong’s Hang Seng fell 0.5 per cent. The Kospi in South Korea slid 0.5 per cent. Australia’s S&P ASX 200 dipped 0.2 per cent.
Reuters and The Associated Press