Canada’s main stock index rose on Tuesday as energy shares hit their highest in more than five years on soaring oil prices, which also fueled inflationary concerns that capped further gains.
The S&P/TSX Composite Index was better by 56.31 points mid-morning Tuesday to 21,360.71.
The Canadian dollar dipped 0.4 cents to 77.71 cents U.S.
Intertape Polymer Group soared $17.09, or 76.7%, to $39.37, and was the largest percentage gainer on the index, after the packaging products maker said it would be taken private by investment firm Clearlake Capital Group in an all-cash deal valued at $2.6 billion.
Bombardier gained 15 cents, or 12.9%, to $1.31.
Energy stocks threatened again to steal the show, with Imperial Oil soaring 67 cents, or 1.1%, to $59.59.
Gold stocks like Barrick jumped 90 cents, or 2.8%, to $32.74.
In communications, Rogers fell 34 cents to $69.18.
On the economic front, Statistics Canada reported Canada’s merchandise imports fell 7.4%, with decreases observed in nearly all product sections.
Meanwhile, exports were down 0.2%. As a result, Canada’s merchandise trade balance went from a $1.6 billion deficit in December 2021 to a $2.6-billion surplus in January 2022.
Alberta will drop its provincial fuel tax to give consumers some relief from soaring energy prices, Premier Jason Kenney said on Monday, as he also urged the United States to revive the canceled Keystone XL oil pipeline.
ON BAYSTREET
The TSX Venture Exchange sprang up 11.12 points, or 1.3%, to 851.33.
Seven of the 12 TSX subgroups went downward, as industrials lost 1.3%, while communications fell 0.7%, and information technology skidded 0.4%.
The five gainers were led by energy, jumping 2.8%, gold, climbing 2.7%, while health-care stocks were haler 1.3%.
ON WALLSTREET
The S&P 500 moved lower on Tuesday following the benchmark’s worst day since October 2020, as investors remained on edge about surging commodity prices and slowing economic growth stemming from Russia’s invasion of Ukraine.
The Dow Jones Industrial dumped 183.46 points to 32,633.92
The S&P 500 settled 33.73 points to 4,167.36.
The NASDAQ Composite tumbled 123.73 points, or 1%, to 12,707.23.
Certain mega-cap technology stocks dragged on the NASDAQ on Tuesday. Netflix lost 1.8%, Microsoft fell more than 2%. Apple and Amazon lost more than 1% each.
Shell apologized for buying cheap Russian oil and said it was divesting itself of all hydrocarbon holdings in the country. Russia itself warned that crude prices could hit $300 a barrel should Western countries enact a ban on exports. Shell shares popped 3% on Tuesday.
Shares of Chevron acquired 2.6% and Exxon rose 2.5%. Plus, solar and other clean energy stocks moved higher as the continued rise in oil prices shifted focus toward alternative energy sources. Enphase Energy added 3.9% and SunPower grew 6.8%.
Prices for the 10-year Treasury plummeted, raising yields to 1.85% from Monday’s 1.78%. Treasury prices and yields move in opposite directions.
Oil prices shot up $8.85 to $128.25 U.S. a barrel.
Gold prices brightened $72.90 to $2,053.60 U.S. an ounce.