TSX up even though crude hitting five-month high fails to lift energy sector
This is a file image of various stocks.
Ross Marowits, The Canadian Press
Published Tuesday, April 2, 2019 12:15AM EDT
Last Updated Tuesday, April 2, 2019 5:00PM EDT
TORONTO -- Canada's main stock index inched higher Tuesday, even though a rise in oil prices to a five-month high failed to lift the key energy sector.
The S&P/TSX composite index closed up 35.81 points to 16,263.87.
In New York, the Dow Jones industrial average was down 79.29 points at 26,179.13. The S&P 500 index was essentially unchanged at 2,867.24, while the Nasdaq composite was up 19.78 points at 7,848.69.
Markets appear to be taking a "breather" a day after posting strong gains as investors await jobs reports that could be a catalyst for action up or down, says Dominique Barker, portfolio manager at CIBC Asset Management.
Barker said markets appear to be shrugging off the growing prospect of a hard Brexit in which Britain would retain few ties to the European Union.
She said there has been "exhaustion" about the protracted political battle even as some large corporations have suggested they may leave Britain for Europe, hurting thousands of British jobs.
A hard Brexit could lead to a British recession with European markets falling three to five per cent and North American markets dipping two to three per cent, Barker said in an interview
The TSX rose on gains in consumer staples stocks such as Metro Inc., along with telecommunications.
Materials was the third-best sector led by gains for Turquoise Hill Resources Ltd. and Barrick Gold Corp. as the price of gold rose with the June gold contract up US$1.20 at US$1,295.40 an ounce. The May copper contract was down 1.9 cents at US$2.91 a pound.
The key energy sector fell, led by Encana Corp. and Crescent Point Energy Corp., despite higher oil prices. The May crude contract was up 99 cents at US$62.58 per barrel. The increase came after the U.S. moved to break up a group of Iranian-linked companies that has transferred around US$1 billion to Iran in violation of U.S. sanctions on the country.
The May natural gas contract was down 2.4 cents at US$2.68 per mmBTU.
The Canadian dollar traded at an average of 74.94 cent US compared with an average of 74.98 cents US on Monday.