Toronto markets soar on higher oil, metal prices

TORONTO -- Energy and mining stocks helped the Toronto stock market soar more than 200 points on the final full trading day before Christmas, as copper and oil prices both rebounded.

See Full Article

Toronto's S&P/TSX composite index climbed 202.05 points to close at 13,284.91 on Wednesday, with all sectors closing higher as Canada's main equities market rallied for a third consecutive day heading into the holidays.

The metals and mining sector of the TSX was the biggest gainer, rising nearly nine per cent, while base metals rose 6.6 per cent.

New York markets also extended their rally for a third day, with the Dow Jones average of 30 stocks up 185.34 points at 17,602.61, while the S&P 500 added 25.32 points to 2,064.29 and the Nasdaq shot up 44.82 points to 5,045.93.

On commodity markets, the contract for February benchmark crude oil was up $1.36 at US$37.50 a barrel, while January natural gas added 10 cents to US$1.98 per mmBtu, sending the TSX energy sector up nearly six per cent.

February gold declined $5.80 to US$1,068.30 an ounce, but March copper added two cents to US$2.13 a pound.

Scott Vali, vice-president of equities at CIBC Asset Management, said the crude price rally followed a U.S. report showing oil inventories have slightly decreased.

However, Vali noted that the rally may be short-lived.

"I would caution that, at this time of year, a lot of the refiners will look to bring down the oil that's in storage as they go into year-end reporting so they don't show big working capital drags on their balance sheet," he said.

"So you get a lot of one-off things happening around this time. In a fairly illiquid market, that can lead to these rallies, which aren't necessarily sustainable in the longer term."

The commodity-sensitive Canadian dollar also traded higher, despite a report from Statistics Canada showing the economy stalled in October. The loonie rose 0.42 of a U.S. cent to 72.17 cents US.

In its report, Statistics Canada said gross domestic product was unchanged month-over-month in October as gains in the resource sector helped offset declines in factory production and consumer spending.

In other economic news, the U.S. Commerce Department said factory orders for long-lasting goods such as autos, airplanes and electronics were flat in November, as the impact of a strong dollar and struggling global economy weigh on U.S. manufacturers. Orders for capital goods not including aircraft, a key proxy for business investment, fell 0.4 per cent.

Meanwhile, the Commerce department reported an "inadvertent release" late Tuesday of some data pertaining to consumer spending in November. The prematurely released data showed that consumer spending for November increased 0.3 per cent, in line with analysts' forecasts.

The department released a more comprehensive November report on spending, along with data on income growth and inflation, at the regularly scheduled time Wednesday morning.



Advertisements

Latest Economic News

  • Early cannabis sales 'unbelievably high' after legalization: feds' U.S. consultant

    Economic CTV News
    OTTAWA -- A U.S. consultant hired by Ottawa to assess Canada's eventual recreational pot market says jurisdictions that regulate cannabis should expect "unbelievably high" sales growth in the first few years as criminals are driven out of business. Source
  • Yo ho ho! Pennsylvania aims to smash U.S. embargo on Cuban rum

    Economic CTV News
    HARRISBURG, Pa. -- Pennsylvania's Cuban rum run got its start in a chance meeting last fall in the parking lot in front of the state capitol. "'You know, we have rum,"' a visiting Cuban government liaison told state Sen. Source
  • Is this the future of college: Online classes, but no degree

    Economic CTV News
    WASHINGTON -- Connor Mitchell's university classes take place online, he doesn't have any exams and he studies in a different country every year. Is he looking into the future or taking a gamble? With college costs rising steadily and with more courses available online for free, some observers are beginning to question the need for a traditional college education that may include lectures on Greek philosophy but burden students with massive debt. Source
  • New York City pitches to Canadian tourists amid 'Trump slump'

    Economic CTV News
    TORONTO -- New York's tourism industry is worried U.S. President Donald Trump's "America First" policies are turning off Canadian visitors, and they're heading north this week to woo Canucks and their tourism dollars. The head of New York City's official tourism organization, NYC & Company, minces no words in admitting he's keen "to counter a little bit of the negative rhetoric that is coming out of Washington. Source
  • Iconic Dad's chocolate chip cookies discontinued, customers bitter

    Economic CBC News
    For months, some Canadians have been searching in vain for their beloved Dad's chocolate chip cookies. A current Facebook thread on the topic is full of tales about quests for the item. Source
  • U.S. economy expanded at weakest pace in 3 years in first quarter of 2017

    Economic CTV News
    WASHINGTON -- The U.S. economy turned in the weakest performance in three years in the January-March quarter as consumers sharply slowed their spending. The result fell far short of President Donald Trump's ambitious growth targets and underscores the challenges of accelerating economic expansion. Source
  • Montreal landlord fined after tenants rent out condo illegally

    Economic CTV News
    A Montreal landlord says he’s been fined more than $1,200 because the tenant living in his condo listed the space on Airbnb without his knowledge. Gerry Galiatsatos said his unit came with tenants when he purchased it less than a year ago. Source
  • Swedish cows in a great moooo-d as summer pastures open

    Economic CTV News
    DROTTNINGHOLM, Sweden -- Despite a cold wind and chilling temperatures, spring has come to Sweden. At least, spring for the milk cows. In an annual event that warms hearts across the country, "koslapp" -- the cow release -- has become a popular family outing for urban residents. Source
  • Trump to spend Day 100 in office talking trade

    Economic CTV News
    WASHINGTON -- U.S. President Donald Trump is marking his 100th day in office by talking tough on trade.Trump's first 100: Day-by-day highlights Analysis: We've read all President Trump's tweets, so you don't have to The White House says the president will sign an executive order Saturday that will direct his Commerce Department and the U.S. Source
  • Trump says he's brought 'profound change' to Washington

    Economic CTV News
    WASHINGTON -- U.S. President Donald Trump on Saturday marked his 100th day in office by saying he had brought "profound change" to Washington and reaffirming that "my only allegiance" is to those he governs.Trump's first 100: Day-by-day highlights Analysis: We've read all President Trump's tweets, so you don't have to During an evening trip to Pennsylvania, one of the states that propelled his unlikely election victory, Trump planned to sign an executive order directing the Commerce Department…