Energy stocks help lift S&P/TSX composite Tuesday as oil tops US$70 a barrel

TORONTO –

Gains in power and battery metals helped raise Canada’s important inventory index larger Tuesday as the worth of oil additionally rose above US$70 a barrel.

The S&P/TSX composite index was up 49.58 factors at 20,204.87, whereas U.S. inventory markets have been closed for the Independence Day vacation.

Energy shares, together with different commodities, helped enhance the TSX into the inexperienced on a low-volume day, stated Mike Archibald, vice-president and portfolio supervisor with AGF Investments Inc.

Oil has been buying and selling for weeks in a variety between the excessive 60s and low 70s, he stated, and Tuesday was no exception as the worth of oil has climbed again above US$70 a barrel.

The uptick got here after Saudi Arabia and Russia introduced Monday they’re extending July manufacturing cuts into August as they search to spice up the worth of oil.

“Whether or not Russia and Saudi Arabia follow through on that remains to be seen, but yes, it’s definitely … having a bit of an impact on the energy price today,” stated Archibald.

Oil remains to be caught between the downward pull of the slowing world economic system and the continuing cuts pulling costs upward, he stated: “That continues to be a battle.”

The remainder of the week will see employment information popping out within the U.S. and Canada, which can assist inform upcoming rate of interest selections by the central banks, stated Archibald. Meanwhile, earnings season is on the horizon as buyers eye U.S. corporations’ second-quarter stories amid a slowing economic system.

In latest weeks there was a little bit of a reversion to underperforming areas of the market, nevertheless it’s not but clear how long-lasting this rotation will probably be, stated Archibald, including earnings will doubtless have an effect on that consequence.

“Financials have done fairly well in the last week or so, and energy as well,” he stated. “We’ll have to see whether or not that follows through as we get further into the second half of the year.”

The Canadian greenback traded for 75.65 cents US in contrast with 75.53 cents US on Friday.

The August crude oil contract was up US$1.21 at US$71.00 per barrel as of late afternoon Tuesday, and the August pure fuel contract was up 4 cents at US$2.75 per mmBTU.

The August gold contract was up US$4.10 at US$1,933.60 an oz and the September copper contract was down lower than a penny at US$3.79 a pound.

– With information from The Associated Press

This report by The Canadian Press was first revealed July 4, 2023.