Toronto market climbs as crude oil futures reach highest level in two weeks

Toronto market climbs as crude oil futures reach highest level in two weeks

Toronto market climbs as crude oil futures reach highest level in two weeks

TORONTO — Canada’s main stock index recovered at the end of Monday trading with the energy sector rising as crude oil futures reached their highest closing in two weeks.

With a vacuum of major data or news, investors had been moved for much of the day by a series of negative events. This included the possible renewal of a trade dispute between the U.S. and China over the COVID-19 pandemic, billionaire investor Warren Buffett’s sale of his entire airline stake and Treasury Secretary Steve Mnuchin’s comments that he wasn’t sure international travel would resume this year.

They were all contributing factors to the day’s pessimism, said Anish Chopra, managing director with Portfolio Management Corp.

“It’s certainly not positive for the markets, those kind of comments,” he said in an interview.

“But there’s lots of different things that could change when you look at it. There’s U.S. states that are starting to reopen, so it’ll be interesting to see how that goes over the next days and weeks.”

Chopra said the reopenings in various parts of the U.S. will give investors a real feel for what’s happening on the ground in regional economies.

He said Buffett’s negative comments about the economy and airlines during the weekend annual meeting of his Berkshire Hathaway pushed the airline sector lower.

Buffett had long been critical of investing in airlines but bought 10 per cent stakes in several U.S. carriers after the sector was restructured.

His message was that airline investors must be prepared financially and psychologically for a long wait in case the worst-case scenarios happen.

The S&P/TSX composite index closed up 124.70 points at 14,745.04 after being down most of the day and reaching an intraday low of 14,518.07.

In New York, the Dow Jones industrial average was up 26.07 points at 23,749.76. The S&P 500 index was up 12.03 points at 2,842.74, while the Nasdaq composite was up 105.77 points at 8,710.72.

Eight of the 11 major sectors on the TSX were higher led by technology and materials.

Technology followed the pattern set in the U.S. by gaining 3.6 per cent with Shopify Inc. climbing 7.6 per cent and Blackberry Inc. up five per cent.

Materials was up more than two per cent with shares of Centerra Gold Inc. up 6.8 per cent and Canfor Inc. up 6.5 per cent.

The June gold contract was up US$12.40 at US$1,713.30 an ounce and the July copper contract was up half a penny at US$2.31 a pound.

The energy sector was slightly positive with Frontera Energy Corp. up 5.4 per cent, while Secure Energy Services Inc. was down 4.1 per cent.

Crude oil and natural gas prices were higher as economic reopenings will help demand while low prices have prompted producers to cut supply.

The June crude contract was up 61 cents or 3.1 per cent at US$20.39 per barrel. That’s the highest level since April 20 and 76 per cent above the low set the next day. However, crude prices are still down 66 per cent from the beginning of the year.

The June natural gas contract was up 10.3 cents at US$1.99 per mmBTU.

The Canadian dollar traded for 71.00 cents US compared with an average of 71.09 cents US on Friday.

Real estate, consumer discretionary and industrials were lower on the day. Industrials fell as shares of Chorus Aviation Inc. and Air Canada were down 10 and 8.65 per cent respectively.

This report by The Canadian Press was first published May 4, 2020.


Ross Marowits, The Canadian Press


Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The external wall of the Bentley Post Office was destroyed when a semi drove into the building, resulting is an estimated $50,000 in damages. (Photo Submitted)
Sylvan Lake RCMP lay charges in post office destruction

One suspect is in custody the second suspect has a warrant for his arrest

Alberta chief medical officer of health Dr. Deena Hinshaw said the province still hopes to bring the hospitalization number down before relaxing restrictions. (photography by Chris Schwarz/Government of Alberta)
14 new deaths, 366 new COVID-19 cases in Alberta

Province nearing 100K COVID-19 vaccine doses administered

The first pages of the book, by Kristy Walker.
Sylvan Lake author pens first children’s book about COVID-19

“The Coronavirus Isn’t Scary” by Kristy Walker teaches children to take care of themselves

Minister of Agriculture and Forestry, MLA Innisfail-Sylvan Lake, Devin Dreeshen. (Photo Submitted)
Ag Minister announces 20% off crop insurance for Alberta farmers

Dreeshen says this will support job creators and boosting rural economy during a difficult time

Mom’s Diner owner Wesley Langlois has joined a growing number of Alberta restaurants that are allowing sit-in dining despite public health restrictions. Photo by PAUL COWLEY/Advocate staff
Red Deer diner joins sit-down dining protest

Mom’s Diner has joined a growing list of Alberta restaurants flouting health restrictions

Young hockey players were out on Bentley Tuesday for a march to a support a return to sports. (Photo courtesy of Bobby McKinlay)
(Kraft Dinner/Twitter)
Kraft Dinner launches candy-flavoured mac and cheese just in time for Valentine’s Day

Sweet and cheesy treat will be here just in time for the cheesiest holiday of the year

In this undated image made from a video taken by the Duke of Sussex and posted on @SaveChildrenUK by the Duke of Sussex and Meghan, Duchess of Sussex, shows the Duchess of Sussex reading the book “Duck! Rabbit!” to their son Archie who celebrates his first birthday on Wednesday May 6, 2020. The Canadian Paediatric Society is reminding families that the process of raising a reader starts from birth. (Duke of Sussex/@SaveChildrenUK)
Canadian Paediatric Society says raising a reader starts from birth

CPS says literacy is one of the strongest predictors of lifelong health outcomes

Employment, Workforce Development and Disability Inclusion Minister Carla Qualtrough responds to a question during a news conference Thursday August 20, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Easing rules for parental benefits created inequities among parents, documents say

Employment Minister Carla Qualtrough’s office says the government will make any necessary changes

People walk along a pedestrianized zone of Sainte-Catherine street in Montreal, Monday, May 18, 2020, as the COVID-19 pandemic continues in Canada and around the world. Newly released statistics point to a major drop in police-recorded crime during the first eight months of the COVID-19 pandemic. THE CANADIAN PRESS/Graham Hughes
Crime down in first 8 months of pandemic, but mental health calls rise: StatCan

The agency says violent crimes such as assault dropped significantly

(Photo submitted)
Central Alberta researchers recognized for studies in agricultural sciences

Jessica Sperber of Ponoka and David MacTaggart of Lacombe awarded prestigious scholarship

FILE – Canadian Prime Minister Justin Trudeau delivers his opening remarks at a news conference outside Rideau cottage in Ottawa, Tuesday, January 19, 2021. THE CANADIAN PRESS/Adrian Wyld
Vaccine CEO ‘very, very clear’ that Canada’s contracts will be honoured: Trudeau

Trudeau says he spoke to Moderna CEO on the morning of Jan. 26

Most Read