TSX Closes Up More Than 80 Pts
Canada's main stock market gained more than 80 points Thursday. Similar to yesterday, there was renewed buying, bargain hunting of mining and metals issues after they were sold down heavy in recent weeks. Energy issues were also in demand with many investors still holding out for central banks in the United States and China to introduce further stimulus to their respective economies, which is expected to lead to increased demand for commodities.
Overall, sentiment for equities has also been boosted by improved strong domestic - for example, Shoppers Drug Mart (SC.TO), which gained 1% today on its second quarter earnings - and U.S. earnings reports.
Crude oil for August delivery on the New York Mercantile Exchange closed up $2.79, or 3.1%, at US$92.66 a barrel, easily surpassing $90 resistance to post seven-week highs. It was also the seventh straight day of gains, as traders pondered the potential for lower supplies and worried about the latest Middle East strife. A solid day in the equity markets, and a greenback that trended lower as the session progressed, provided support.
Gold for August delivery on the Comex division of the New York Mercantile Exchange closed up $9.60, or 0.6%, at US$1,580.40 an ounce. The modest gains came as the U.S. currency failed to establish a clear trading bias today, and as some market participants continued to wager that the Federal Reserve may conduct a third round of quantitative easing even if chief Ben Bernanke didn't allude to it in his testimony this week. Some traders also suggested that investors who live in economically troubled areas, including Western Europe, may be going long on gold alongside the greenback as a haven as euro zone troubles persist.
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