2023-07-04 21:50:42
(Photo: 123RF)
MARKET REVIEW. The Toronto Stock Exchange’s benchmark index closed higher on Tuesday, buoyed by stocks in the energy and battery metals sectors, as crude oil prices hit the US$70 a barrel mark.
US stock markets were closed for the Independence Day holiday.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX gained 49.58 points (+0.25%) to 20,204.87 points.
In New York, the S&P 500 is closed.
The loon gained 0.0017 (+0.23%) to US$0.7571.
The oil gained US$1.21 (+1.73%) to US$71.00.
L’or gained US$4.10 (+0.21%) to US$1,933.60.
The bitcoin a fell by US$266.94 (-0.86%) to US$30,820.60.
Context
Energy stocks, along with those related to other commodities, helped propel the TSX into the green following a low volume day, said Mike Archibald, vice president and portfolio manager at AGF Investments.
Oil has been trading for weeks in a range between the highs of US$60 and the lows of US$70, he recalled, and Tuesday was no exception as the price of oil rallied to the above US$70 a barrel.
The rise came following Saudi Arabia and Russia announced on Monday that they were extending production cuts from July through August, to seek to boost the price of oil.
“It remains to be seen whether Russia and Saudi Arabia will follow through on this, but yes, it certainly has (…) an impact on the price of energy today,” said Mike Archibald.
Oil is still caught between the downtrend of the slowing global economy and the ongoing cuts, which are pushing prices higher, he explained. “It continues to be a battle.”
The rest of the week will see the release of employment data from the United States and Canada, which will help inform central banks’ upcoming decisions on interest rates, said the VP at AGF Investments. Meanwhile, earnings season is right around the corner, and investors will be studying second-quarter reports from U.S. companies amid a slowing economy.
In recent weeks, there has been a slight return to underperforming areas of the market, but it is not yet clear how long this rotation will last, noted Mike Archibald, adding that earnings are likely to affect this situation.
“Financial stocks have done quite well over the past week, and so have energy stocks,” he said. We will have to see if this will persist or not as we move forward into the second half of the year.”
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