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S&P/TSX composite index closes up on oil prices, U.S. markets also rise

A sign board displays the TSX level in Toronto, Friday, June 4, 2021. THE CANADIAN PRESS/Frank Gunn. FNG

Canada’s main stock index was up nearly 250 points Tuesday, swept up by a reversal in oil prices and broad-based gains, while U.S. markets also rose.

The S&P/TSX composite index was up 242.88 points at 20,220.01. The TSX energy index was up by 2.42 per cent, while metals also rose at a higher rate than other sectors.

In New York, the Dow Jones industrial average was up 397.82 points at 34,098.10. The S&P 500 index was up 53.64 points at 4,003.58, while the Nasdaq composite was up 149.90 at 11,174.41.

Read more: S&P/TSX composite closes down four points, U.S. markets slip

It’s been an interesting day for the markets, said Colin Cieszynski, chief market strategist at SIA Wealth Management, with U.S. indexes making gains later in the day as the markets became less choppy.

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In the U.S., the approaching Thanksgiving holiday which will see markets closed Thursday is likely on investors’ minds, said Cieszynski.

“This is a seasonal thing. It’s not uncommon for the markets to kind of rally in November, and we’re kind of seeing that play out,” he said.

“It just feels like the markets are … starting to slow down for the holidays.”

Several U.S. retailers reported strong earnings Tuesday, seeing stock prices surge as a result. Gains in the U.S. were broad-based, with the price of oil lifting energy stocks higher and technology stocks helping drive the rally.

The Canadian dollar traded for 74.65 cents UScompared with 74.34 cents US on Monday.

Crude oil and natural gas prices picked up Tuesday which was good for Canada, Cieszynski said, as oil rose back above US$80 a barrel.

The January crude oil contract was up 91 cents at US$80.95and the January natural gas contract was up 18 cents at US$7.41 per mmBTU.

Oil was up after Saudi Arabia disputed rumours Monday that it was going to increase production, Cieszynski said.

Cieszynski said there’s a “flurry” of economic data coming Wednesday morning in the U.S.

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“There’s going to be quite a bit to chew on” before Thanksgiving, he said.

Cieszynski said upcoming data on employment and inflation in Canada and the U.S. will help inform one last rate hike for the central banks, which are widely expected to start slowing down the pace of their increases.

The December gold contract was up 30 cents at $1,739.90 an ounce,and the December copper contract was up four cents at US$3.61 a pound.

With files from The Associated Press

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