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Canada’s main stock index hit a record high on Tuesday, helped by mining stocks, while the prospect of strong corporate earnings further lifted investor sentiment.

At 9:33 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 63.41 points, or 0.3%, at 21,048.78. It was the first time ever the Canadian benchmark index trading above 21,000.

U.S. stock indexes opened higher too, as upbeat quarterly reports from Johnson & Johnson and Travelers fired up risk appetite, after big banks kicked off the third-quarter earnings season on a positive note last week.

The Dow Jones Industrial Average rose 66.76 points, or 0.19%, at the open to 35,325.37. The S&P 500 opened higher by 10.88 points, or 0.24%, at 4,497.34, while the Nasdaq Composite gained 51.32 points, or 0.34%, to 15,073.13 at the opening bell.

Johnson & Johnson’s shares rose 1.8% in early trading after it raised its 2021 adjusted profit forecast, even as it stuck to its outlook of $2.5 billion in sales from its COVID-19 vaccine this year.

Walmart Inc’s shares rose 2% after Goldman Sachs added the world’s largest retailer to its “Americas Conviction List.”

Large-cap technology and communications companies including Facebook Inc, Apple Inc, Inc , Alphabet Inc and Microsoft Corp all rose between 0.3% and 0.7%. Netflix Inc rose 0.1% ahead of its quarterly results later in the day.

After forecast-beating results from big banks last week set a positive tone for this earnings season, investors now turn to results from companies that are more exposed to supply chain constraints, price rises and labor shortages.

The S&P/TSX Composite Index has risen for nine days in row and closed Monday at a fresh record high. The S&P 500 index is 1.3% away from a record-high hit in early September, as investors now hope that a continuous flow of better-than-expected earnings reports could push the market to new highs.

“Should we have another solid week of results, this may inject S&P 500 bulls with enough confidence to venture into uncharted territory beyond its all-time high,” wrote Lukman Otunuga, senior research analyst at FXTM in a client note.

Analysts now expect S&P 500 earnings to show a 32% rise from a year ago, according to Refinitiv data.

In Canada, shares of Rogers Communications Inc. are in the spotlight as a conflict involving management of the telecom continues. The Globe and Mail is reporting this morning that Rogers chair Edward Rogers says he sees “room for improvement” in the company’s long-term performance, breaking his silence after a failed bid to oust chief executive officer Joe Natale and other executives.

Rogers has also made a formal request for a list of the company’s shareholders and had discussions with potential candidates to replace board members, according to a source with direct knowledge of the matter.

His attempt to overhaul the leadership at Canada’s largest wireless carrier was thwarted by the board and his own family. The boardroom rift has erupted during the $26-billion takeover of Shaw Communications Inc.

Rogers shares are flat so far today.

Meanwhile, cryptocurrencies aren’t being left behind in the move higher in asset prices. Bitcoin hit a six-month high and was within striking distance of a record on Tuesday as traders bet an anticipated listing of a futures-based U.S. exchange traded fund could herald investment flows into bitcoin and cryptocurrency assets.

Bitcoin rose as far as 1.5% during the Asia session to $62,991, its strongest level since the record peak of $64,895 in April.



Oil prices are higher this morning as a supply crunch in natural gas, electricity and coal continued across the globe while falling temperatures in China revive concerns over whether the world’s biggest energy consumer can meet domestic demand for heating.

The two major crude oil contracts are both up roughly 1%.

With temperatures falling as the northern hemisphere winter approaches and heating demand increasing, prices of oil, coal and natural gas are likely to remain elevated, traders and analysts said.

Colder weather has already started to grip China, with close to freezing temperatures forecast for northern areas, according to

Coal futures in China rose as much as 7.8% on Tuesday, while riskier assets such as equities also gained.

The rising coal and natural gas prices in Asia are expected to cause some end-users to switch to lower-cost oil as an alternative.

While it is still uncertain how long the imbalance will affect the oil market, oil traders seem convinced that we are in for a high-price winter, said Rystad Energy analyst Louise Dickson.

However, the power crunch that is sending prices higher is also hurting Chinese economic growth, which fell to its lowest in a year, official data showed on Monday.

China’s daily crude oil processing rate also fell last month, dropping to the lowest level since May last year.

Helping to keep a lid on prices, U.S. oil output is set to rise. Production in the largest shale formation in the world’s biggest oil producer is expected to gain further next month, the Energy Information Administration said.

Copper prices are also marching higher as industrial users seek material from declining inventories while speculative buyers are also piling in.

Three-month copper on the London Metal Exchange (LME) had climbed 1.3% to $10,323 a tonne by early morning.

LME copper has jumped by 15% in less than two weeks, moving closer to a record peak of US$10,747.50 touched in May, supported by sliding inventories and concerns over inflation.

“Specs are attracted by commodities as an inflation hedge while the physical guys are trying to get as much material as possible,” said Gianclaudio Torlizzi, partner at the T-Commodity consultancy in Milan.

“Climate-change policies are a game changer, increasing demand for copper all over the world, so China is no longer the main driver.”

Currencies and bonds

The Canadian dollar is up sharply this morning, rising above 81 cents US. An uptick in bond yields this morning is helping, as well as higher crude prices. But the move mostly reflects weakness today in the greenback, said forex strategists at Scotiabank.

The U.S. dollar is trading broadly lower against major currencies following a heavy sell-off that started during the Asian trading day. There is no obvious catalyst for the drop—beyond a very slight moderation in Fed rate expectations and somewhat softer US term yields. But the movement in rates hardly explains extent of the USD drop. Rather, it seems USD long liquidation has snowballed into a broader clear out of positioning, triggering a technical reversal in the USD generally,” said Shaun Osborne, Scotiabank’s chief forex strategist.

“We remain bullish on the broader USD outlook but losses today below index support suggests that the drop may have a little further to run in the short term. However, with markets generally expecting the Fed to taper shortly and to start tightening monetary policy after the middle of next year, we think losses are liable to remain limited; the USD generally outperforms in periods of US economic and/or monetary policy superiority and with Europe and Japan set to lag—significantly—behind North America in the monetary tightening race, the EUR, JPY and CHF in particular are liable to underperform the USD (and the CAD) in the medium term,” he added in a note.

Other corporate news

Spin Master Corp. is investing $100 million to create Spin Master Ventures to help fund early-stage companies.

Travelers Cos Inc rose 2.7% after the property and casualty insurer beat estimates for third-quarter profit.

Earnings include: Bank of NY Mellon; Canadian National Railway Co.; Centamin PLC; Johnson & Johnson; Kansas City Southern; Netflix Inc.; Philip Morris International Inc.; Procter & Gamble Co.; United Airlines Holdings Inc.

Economic news

(8:30 a.m. ET) U.S. housing starts for September. Consensus is an annualized rate rise of 0.3 per cent.

(8:30 a.m. ET) U.S. building permits for September. The Street expects a decline of 2.4 per cent on an annualized rate basis.

With files from Reuters

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