Stocks aped their American cousins Tuesday, with gains in the oil patch overcoming setbacks in industrial stocks.
The TSX Composite Index gained 35.28 points to finish Tuesday’s session to 29.063.01.
The Canadian dollar erased 0.33 cents to 72.15 cents U.S.
Expectations that the BoC and the U.S. Federal Reserve will resume their easing cycles have supported sentiment since Friday, following disappointing jobs data from both the United States and Canada.
Investors assign a 92.5% probability that the Bank of Canada will lower its benchmark rate from 2.75% on Sept. 17.
Among other commodities, oil and copper prices edged higher.
Markets were also assessing multiple mergers and acquisitions deals.
London-listed miner Anglo American and Teck Resources said on Tuesday they plan to merge, in what would be the biggest mining-sector M&A deal in more than a decade.
Teck shares zoomed $5.59, or 11.5%, to $54.09.
Separately, the bidding war for Canadian oil sands producer MEG Energy heated up as Strathcona Resources raised its offer to outbid larger rival Cenovus Energy.
Shares in MEG gathered 10 cents to $29.12, while those for Strathcona took cleared breakeven by only four cents, to $38.46, and Cenovus advanced 45 cents, or 2%, to $22.57.
Financials also had a positive day, with Laurentian Bank capturing 79 cents, or 2.6%, to $32.10, while Fairfax Financials sprang $56.72, or 2.4%, to $2,421.50.
Among materials, Ero Copper gained 86 cents, or 3.5%, to $21.81, while Ivanhoe Mines progressed 40 cents, or 3.2%, to $12.66.
In industrials, Brookfield Business Partners slumped $1.91, or 4.9%, to $36.72, while Richelieu Hardware dumped 53 cents, or 1.5%, to $35.84.
In consumer discretionary stocks, BRP Inc. fell $4.09, or 4.3%, to $90.16, while Pet Valu Holdings sank 56 cents, or 1.4%, to $38.56.
Bausch Health Companies collapsed 14 cents, or 1.4%, to $9.98.
ON BAYSTREET
The TSX Venture Exchange subtracted 2.71 to 861.22
All but three of the 12 subgroups were lower on the day, as industrials shed 0.7%, while consumer discretionary and health-care stocks each lost 0.6%.
The three gainers were energy, rumbling 1.7%, financials, ahead 0.4%, but materials eked up but 0.04%.
ON WALLSTREET
All three major indexes closed at record highs Tuesday as investors tried to look past concerns about the state of the U.S. economy.
The Dow Jones Industrials gained 196.39 Tuesday to greet Tuesday’s closing bell at 45,597.28, thanks to a surge in UnitedHealth shares. The shares jumped $27.77, or 8.6% to $347.92.
The S&P 600 index regained 17.46 points to 6,512.61.
The tech-heavy iNASDAQ index hiked 80.79 points to 21,879.49, hitting a new high.
The Labor Department updated its jobs figures for the 12 months through March, lowering the total payroll gains during that period by a whopping 911,000.
While the data had minimal impact on stocks Tuesday because its regarding figures from six months ago, the report may reinforce calls for the Federal Reserve to be more aggressive with rate cuts this year.
During Tuesday’s session, Apple shares were lower by $3.53, or 1.5%, to $234.35,ahead of an annual event in which the company is expected to unveil a new iPhone.
Additionally, Fox shares dipped $3.79, or 6.7%, to $53.02, after Lachlan Murdoch gained control of the media empire as the Murdoch family settled a dispute over the family trust. Dell Technologies shares also slid $1.91, or 1.4%, to $121.29, after CFO Yvonne McGill resigned, effective Tuesday.
But investors are now awaiting two key inflation reports that could determine what Federal Reserve policymakers will do at their meeting next week. Last week, a surprisingly weak jobs report added to hopes the path for interest rates is lower.
Prices for 10-year Treasury declined Tuesday, raising yields to 4.08% from Monday’s 4.04%. Treasury prices and yields move in opposite directions.
Oil prices advanced 38 cents to $62.64 U.S. a barrel.
Gold prices surrendered $8.90 to $3,668.50 U.S. an ounce.
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