TSX Keeps Climbing on Energy Boost

·3 min read

Energy shares pushed Canada's main stock index to a record high on Tuesday, as investors eyed the U.S. Federal Reserve's meeting this week for cues on the tapering of its monetary policy.

The TSX Composite index came off its highs of the day, but remained positive 63.08 points to reach noon at 20,220.73.

The Canadian dollar fell 0.40 cents to 81.95 cents U.S.

The largest percentage gainer on the TSX was BRP Inc, which jumped $2.18, or 2.3%, to $96.07, after the insurance distribution company issued a $350 million worth substantial issuer bid.

Aritzia rose 71 cents, or 2.1%, to $34.11, after the apparel retailer acquired 75% of the athletic apparel maker Reigning Champ in deal worth $63 million

Among miners, First Quantum Minerals dumped $2.14, or 7.6%, to $25.91, and Hudbay Minerals, fell 54 cents, or 6.4% to $7.92.

On the economic slate, Canada Mortgage and Housing Corporation (CMHC) says the trend in housing starts was 280,779 units in May, up slightly from 278,462 units in April 2021.

CMHC says this trend measure is a six-month moving average of the monthly seasonally adjusted annual rates of housing starts.

ON BAYSTREET

The TSX Venture Exchange swooned 10.95 points, or 1.1%, to 966.84.

All but three of the 12 TSX subgroups were positive midday with energy moving ahead 1.2%, while information technology and communications each climbed 0.9%

The three laggards were health-care, stepping back 2.6%, materials down 1.5%, and gold dulling 0.7%.

ON WALLSTREET

U.S. stocks fell slightly on Tuesday with the S&P 500 and the NASDAQ Composite slipping from their respective records, as investors awaited the key Federal Reserve’s monetary policy meeting.

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The Dow Jones Industrials lost 147.58 points to 34,246.17.

The S&P 500 fell 9.84 points to 4,245.63

The NASDAQ dropped 85.74 points to 14,088.40, as Apple, Alphabet and Amazon all traded in the red.

Real estate and materials were the biggest laggards on Tuesday, while the energy sector provided the broader with some support, rising 1.5%.

On the data front, the final demand index for producer prices advanced 6.6% for the 12 months ended in May, the largest increase since 12-month data were first calculated in November 2010.

On a monthly basis, the producer price index for final demand rose 0.8%, ahead of the Dow Jones estimate of 0.6%. Producer prices measure the prices paid to producers as opposed to prices on the consumer level.

Meanwhile, May’s retail sales data fell 1.3%, compared to an expectation of a 0.7% decline per economists polled by Dow Jones.

The Fed’s two-day policy meeting starts on Tuesday, and it’s a focal point for the markets this week. The central bank is not expected to take any action. However, commentary on interest rates, inflation and the economy could drive market moves.

Prices for 10-Year Treasurys were static, leaving yields at 1.5%.

Oil prices gained 81 cents to $71.69 U.S. a barrel.

Gold prices lost $7.90 to $1,858 U.S. an ounce.


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