TORONTO — Canada’s main stock index finished higher to cap off trading on Tuesday, benefiting from a rise in oil prices, while U.S. markets moved lower.
The S&P/TSX composite index closed up 134.46 points at 27,539.88.
“It’s been a mixed day, following a very strong rally over the last three months. What’s unique about the TSX in Canada is that it is getting the benefit of higher oil prices today,” said Angelo Kourkafas, a senior global investment strategist at Edward Jones.
Kourkafas said oil prices were rising on the news that U.S. President Donald Trump said Monday he is giving Russian President Vladimir Putin 10 to 12 days to stop the killing in Ukraine, shortening a 50-day deadline he had given the Russian leader two weeks ago.
He said the move triggered a rally in crude prices, “boosting the energy sector which has a large representation in the TSX.”
The September crude oil contract was up US$2.50 at US$69.21 per barrel.
Aside from energy names, other companies that also traded higher on Tuesday included Celestica Inc., which rose after reporting second-quarter earnings Monday and raising its full-year outlook. Shares of the Toronto-based tech firm gained about 17 per cent on the day.
Meanwhile, Air Canada shares fell 12.3 per cent during the trading session after reporting its latest results. The airline said it has been shifting capacity toward high-demand international markets as Canadians’ appetite for U.S. travel continues to lag.
“Airlines, and Air Canada, have been impacted by what is going on on the trade front and lower traffic with Canadians travelling less to the U.S.,” Kourkafas said.
In New York, the Dow Jones industrial average was down 204.57 points at 44,632.99. The S&P 500 index was down 18.91 points at 6,370.86, while the Nasdaq composite was down 80.29 points at 21,098.29. The S&P 500 slipped 0.3 per cent for its first drop after closing at an all-time high in six successive days. The Nasdaq composite shaved 0.4 per cent off its own record.
On the trade front, Kourkafas said markets are “taking a glass half full approach” ahead of the looming Aug. 1 tariff deadline, when a pause on a slew of U.S. tariffs is set to expire.
“It is encouraging that some of the trade policy uncertainty is reduced as we got the EU-U.S. trade agreement, and also with Japan the week before. As it relates to Canada, it seems like negotiations remain challenging, but talks are continuing to find a late breakthrough,” he said.
A deal struck by the U.S. with the European Union on Sunday imposes a 15 per cent tariff on most goods imported into the U.S., including European automobiles, and no carveouts for key products like pharmaceuticals and steel.
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