Energy stocks help lift S&P/TSX composite Tuesday as oil tops US$70 a barrel
Gains in energy and battery metals helped lift Canada’s main stock index higher Tuesday as the price of oil also rose above US$70 a barrel.
The S&P/TSX composite index was up 49.58 points at 20,204.87, while U.S. stock markets were closed for the Independence Day holiday.
Energy stocks, along with other commodities, helped boost the TSX into the green on a low-volume day, said Mike Archibald, vice-president and portfolio manager with AGF Investments Inc.
Oil has been trading for weeks in a range between the high 60s and low 70s, he said, and Tuesday was no exception as the price of oil has climbed back above US$70 a barrel.
The uptick came after Saudi Arabia and Russia announced Monday they are extending July production cuts into August as they seek to boost the price of oil.
“Whether or not Russia and Saudi Arabia follow through on that remains to be seen, but yes, it’s definitely? having a bit of an impact on the energy price today,” said Archibald.
Oil is still caught between the downward pull of the slowing global economy and the ongoing cuts pulling prices upward, he said: “That continues to be a battle.”
The rest of the week will see employment data coming out in the U.S. and Canada, which will help inform upcoming interest rate decisions by the central banks, said Archibald. Meanwhile, earnings season is on the horizon as investors eye U.S. firms’ second-quarter reports amid a slowing economy.
In recent weeks there has been a bit of a reversion to underperforming areas of the market, but it’s not yet clear how long-lasting this rotation will be, said Archibald, adding earnings will likely affect that outcome.
“Financials have done fairly well in the last week or so, and energy as well,” he said. “We’ll have to see
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