Canada's main stock index edges higher on U.S. news, Canadian dollar down
The Canadian dollar appears in this undated file photo. (Jonathan Hayward / THE CANADIAN PRESS)
TORONTO -- Major North American markets advanced Tuesday on positive news regarding China-U.S. talks and the American debt ceiling.
The S&P/TSX composite index rose 53.80 points to 16,572.68.
In New York, the Dow Jones industrial average advanced 177.29 points to 27,349.19. The S&P 500 index gained 20.44 points to 3,005.47, while the Nasdaq composite moved up 47.27 points to 8,251.40.
"The tone in the markets is fairly positive today," said Natalie Taylor, a portfolio manager with CIBC.
That boils down to two high-level, macro headlines in recent days that are supportive for the market, she said.
First, the White House and Congress reached a budget agreement that spared the economy from deep spending cuts and increased spending by US$320 billion over two years.
The agreement also raises the debt ceiling or the limit on the government's borrowing authority for two years.
That news has put concerns over the debt ceiling to rest, said Taylor.
Second, it appears China and the U.S. will resume trade negotiations, she said.
"I think it's just the continued optimism building around that," said Taylor, adding the news has been supportive to the market over the past few days.
Additionally, the markets are in the swing of earnings season now, she said, and the tone has been quite positive in the U.S. and in Canada, where the season is starting.
In currencies, the Canadian dollar traded at 76.09 cents US, down from an average of 76.32 cents US on Monday.
The September crude contract gained 55 cents to US$56.77 per barrel and the September natural gas contract shed about two cents to about US$2.28 per mmBTU.
The August gold contract dropped US$5.20 to US$1,421.70 an ounce and the September copper contract fell about two cents to US$2.70 a pound.
With files from The Associated Press