Canada’s main stock index closed up on Thursday, buoyed by strength in the energy and technology sectors, while U.S. stock markets notched muted gains.
The S&P/TSX composite index climbed 148.26 points to 21,942.16.
In New York, the Dow Jones industrial average was up 36.26 points at 39,164.06. The S&P 500 index was up 4.97 points at 5,482.87, while the Nasdaq composite was up 53.53 points at 17,858.68.
A stronger performance by equities north of the border over the past couple of days can be traced to different reactions to economic news. Assumptions of a slowdown are already baked into expectations here, while recognition in the U.S. of a potential comedown from the record stock highs of the past six months is newer, said one expert.
“There’s been a little bit more data recently that’s suggesting that the U.S. economy is finally showing some slight signs of slowing down,” said Michael Greenberg, head of Americas portfolio management at Franklin Templeton Investment Solutions.
“The economy slowing in Canada is not really a big surprise … and therefore maybe a little bit more in the price. Whereas in the U.S. obviously we’ve had a very high-flying stock market there, and maybe we’re just seeing a little bit of a pause today from that.”
In Canada, energy stocks rose Thursday despite ongoing restrictions on oil output by members of the Organization of the Petroleum Exporting Countries as well as Russia.
“There’s been some supply management of energy by OPEC and others as they try to curtail supply a little bit to keep prices buffeted. But at the same time from a demand side, you’ve got signs of a little bit of weakness coming through,” he said.
In the technology realm, BlackBerry Ltd. enjoyed a nearly 11 per cent jump in its share price Thursday that boosted the tech index. The Waterloo, Ont.-based company’s CEO told analysts on Wednesday evening that plans to divide up its business have so far produced millions in savings and put the business on a path to profitability.
However, a drop in base metals weighed on the S&P/TSX throughout the day.
“They’re going to be fairly tied to expectations around economic growth,” Greenberg said, pointing to mild warning signs out of the United States and China.
In the U.S. and beyond, all eyes are on the first U.S. presidential debate set for Thursday night, a television spectacle that could nudge markets.
“The general consensus is obviously with a Trump presidency, that’s going to be a little bit less regulation on things like the energy sector. Biden may be more toward some of the sectors that are more EVs and the environmental side,” Greenberg said.
“If one of the candidates really fumbles, we might see certain parts of the market do well.”
In Canada, analysts await economic output data on Friday.
On Thursday, the Canadian dollar traded for 73.05 cents US compared with 73.01 cents US on Wednesday.
The August crude oil contract was up 84 cents at US$81.74 per barrel and the August natural gas contract was down six cents at US$2.69 per mmBTU.
The August gold contract was up US$23.40 at US$2,336.60 an ounce and the September copper contract fell two cents to US$4.35 a pound.