TSX surges as oil climbs

By Baystreet Stock Market Update

Bausch, First Quantum in focus

Equities in Canada’s largest centre moved higher approaching noon ET on Tuesday, boosted by gains in energy companies as oil prices rose on signs that the Organization of the Petroleum Exporting Countries may not raise output to address shrinking supplies from Iran.

The S&P/TSX Composite Index remained afloat 58.52 points to move into noon hour at 16,140.83

The Canadian dollar regained 0.33 cents to 76.93 cents.

Foreign Minister Chrystia Freeland on Monday said she would return to Washington, this week for fresh talks on the North American Free Trade Agreement as time is running very short to meet a U.S. demand for a deal by Oct. 1.

The largest percentage gainers on the TSX were First Quantum Minerals, which jumped 66 cents, or 4.3%, to $15.94, and Bausch Health Co, which popped $1.84, or 6.3% to $31.24.

Eldorado Gold fell a penny to $1.12, while another major decliner was New Gold, down six cents, or 4.5%, to $1.38

In matters macroeconomic, Statistics Canada reported that manufacturing sales increased for the third consecutive month in July, rising 0.9% to $58.6 billion. Higher sales in the transportation equipment and chemical industries drove the increase.

ON BAYSTREET

The TSX Venture Exchange was positive 2.59 points to 721.95

Seven of the 12 subgroups were higher, as health-care zoomed 3.5%, while energy acquired 1.4%, and information technology picked up 0.9%

The five laggards were weighed most by real-estate, falling 0.6%, while consumer discretionaries and utilities were each down 0.4%.

ON WALLSTREET

Stocks rose on Tuesday as the latest tariffs on U.S. and Chinese goods are not as bad as previously feared. Strong gains in tech also lifted the broader market.

The Dow Jones Industrial Average popped 134.05 points to near noon at 26,196.17, as Nike and Intel outperformed.

The S&P 500 recovered 18.28 points to 2,907.08, led by tech and consumer discretionary.

The NASDAQ recovered from Monday’s bruising, restoring 84.66 points, or 1.1%, to 7,980.79, as Amazon, Apple, and Alphabet traded higher

China announced tariffs targeting more than 5,000 U.S. products will go into effect on Sept. 24. However, China will put a 10% tariff on some goods it had previously earmarked for a 20% levy.

The announcement comes after the Trump administration announced the U.S. will impose 10% tariffs on $200 billion worth of Chinese imports, and those duties will rise to 25% at the end of the year.

Caterpillar picked up 0.9%, and Boeing – also considered a trade bellwether for their large overseas exposure — rose 0.6%.

Tech shares bounced back after steep losses in the previous session. Amazon rose 2.5% after posting its worst day since April on Monday. Netflix, meanwhile, grew 3%, and Apple rose 0.8%.

Prices for the benchmark for the 10-year U.S.Treasury plummeted, raising yields to 3.04% from Monday’s 2.99%. Treasury prices and yields move in opposite directions.

Oil prices remained positive 88 cents to $69.78U.S. a barrel.

Gold prices faded $2.30 to $1,203.50

This article provided by NewsEdge.