TSX Ends Higher For 2nd Straight Day
(RTTNews) - The Canadian stock market shrugged off a mid morning setback and ended on a positive note on Wednesday, led by gains in information technology, industrials and consumer staples sections.
Energy stocks fell as crude oil prices tumbled to near 5-month lows on data showing a big increase in U.S. crude stockpiles in the week ended May 31.
Gold stocks moved higher and financial shares turned in a mixed performance.
The Federal Reserve Chairman Jerome Powell's hint on Tuesday about a likely rate cut this year contributed to market's rise for a second successive day.
The benchmark S&P/TSX Composite Index ended up 46.42 points, or 0.29%, at 16,212.66. The index, which fell to 16,128.59 around mid morning, rose to 16,224.76 later on in the session.
Information technology stock Shopify Inc. (SHOP.TO) gained 6.6%. Kinaxis Inc. (KXS.TO), CGI Group (GIB.TO), Open Text Corporation (OTEX.TO) and Constellation Software (CSU.TO) ended higher by 1 to 1.8%.
Bombardier Inc. (BBD.B.TO), which rose 9.7%, was the biggest gainer in the industrials space. Thomson Reuters (TRI.TO) gained 3.05%, Badger Daylighting (BAD.TO) gained nearly 3%, Toromont Industries (TIH.TO) advanced 2.55% and Transcontinental (TCL.A.TO) gained 2.35%.
Consumer staples shares Saputo Inc. (SAP.TO), Metro Inc. (MRU.TO), Premium Brands Holdings (PBH.TO), Alimentation Couche-Tard Inc. (ATD.B.TO), Loblaw (L.TO), North West Company (NWC.TO) and Empire Company (EMP.A.TO) gained 1 to 1.6%.
Energy shares Crescent Point Energy (CPG.TO), Precision Drilling Corp. (PD.TO), Encana Corporation (ECA.TO), Tourmaline Oil Corp. (TOU.TO), Cenovus Energy (CVE.TO) and Canadian Natural Gas (CNQ.TO) lost 3 to 7.3%.
U.S. stocks ended higher on optimism about a potential interest rate cut after Federal Reserve Chairman Jerome Powell pledged to sustain the U.S. economic expansion. He said on Tuesday that the central bank will act "as appropriate" to support the economy.
Markets in Europe and across the Asia-Pacific region also ended on a firm note on Wednesday.
In commodities, West Texas Intermediate crude oil futures for July ended down $1.80, or 3.4%, at $51.68 a barrel, after plunging to a low of $50.66 in the session, the weakest level since January 15.
Gold futures for August ended up $4.90, or 0.4%, at $1,333.60 an ounce.
Silver futures for July ended up $0.022, at $14.791 an ounce, while Copper futures for July settled lower by $0.0460, at $2.6230 per pound.