TSX May Open Higher As Oil Prices Provide Support
Canada's benchmark index looked set to open higher on Tuesday, drawing strength from rising oil prices .
Action Economics said WTI crude futures are up 0.3% at US$65.75, extending a rebound from yesterday's low at US$65.08. Prices are presently up 3.7% over the last week, and are up by nearly 7% on the month and 8.8% up on the year-to-date. Crude is set to post its third consecutive quarter of price gains, a feat which has not been seen since late 2010, according to Reuters analytics. Strong compliance in OPEC's supply limiting accord, along with concerns that the Trump administration is going to take a more hawkish stance against Iran, are bullish factors in current market narratives.
Conversely, gold futures have fallen back from the six-week high of US$1,356.70 posted in London. A modest dollar rebound prompted some profit taking, while perceived improvement in the global trade backdrop has taken some safe-haven appeal off the table. As a result, materials may keep gains in check.
The TSX surged 74 points on Monday, with consumer discretionary issues leading advancers.
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