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TSX May Open Higher As Gold, Oil Prices Rise

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Canada's benchmark index looked set to open higher on Tuesday, boosted by rising gold and oil prices .

Stock futures for the September quarter on the S&P TSX index were up 0.4% recently.

Action Economics ( AE ) said NYMEX crude has rallied to fresh trend highs, with supply outages providing support. A power outage at a Canada Syncrude unit has shut in about 350,000 barrels per day of production, not expected to be restored until August. Libyan output has fallen by 850k bpd, as armed conflict there has shut ports. Meanwhile, U.S. sanctions on Iran have begun to impact exports there. As a result, oil prices are set to continue to head higher, with sources looking for a test of the $78 level in the coming sessions.

Gold was also in the positive territory. AE said the dollar has traded mixed, presently sitting at near net unchanged levels against the euro and yen, while losing ground to the dollar bloc and most emerging world currencies, and sterling outperformed, the former two groups rising amid a lift in global stock markets and the latter after a forecast-beating construction PMI release out of the UK.

The TSX surged by 97 points on Friday, with the materials sector leading the advance.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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