Canada’s main stock index rose on Wednesday, led by gains in energy stocks after oil prices climbed on tighter supplies.
The Toronto Stock Exchange’s S&P/TSX Composite index was unofficially up 59.84 points, or 0.37 per cent, at 16,396.29.
Ten of the index’s 11 major sectors were higher.
The energy sector rose 1.7 per cent. Baytex Energy Corp. was up 14.7 per cent, while Whitecap Resources Inc. and MEG Energy Corp. increased 7.7 per cent and 6.7 per cent, respectively.
Conversely, material stocks dipped 0.6 per cent. Kinross Gold Corp. was down 1.7 per cent, while West Fraser Timber Co. Ltd. lost 1.5 per cent.
Oil prices rallied more than 1 per cent after U.S. data showing a deep drawdown in gasoline stocks overshadowed crude inventories rising to 17-month highs, and as sanctions and blackouts in Venezuela helped tighten global supplies.
International benchmark Brent futures settled up $1.12 to $71.73 a barrel. U.S. West Texas Intermediate (WTI) crude oil futures climbed 63 cents to settle at $64.61 a barrel.
The euro rose and world stock markets edged higher on Wednesday amid tame U.S. inflation data and as the European Central Bank left its ultra-easy policy stance unchanged but warned that economic risks remained to the downside.
ECB President Mario Draghi confirmed policymakers were considering whether measures are needed to mitigate the impact on European banks of the central bank’s negative deposit rates.
European bank stocks declined and the yield on Germany’s benchmark 10-year bond fell to a one-week low of negative 0.038 per cent, about 0.05 percentage point from 2-1/2 year lows they hit last month.
Major European stock indexes rose, though sentiment was capped by U.S. threats earlier this week to slap tariffs on goods from the European Union.
Separately, data showed U.S. consumer prices increased by the most in 14 months in March but underlying inflation remained benign against a backdrop of slowing global economic growth.
Minutes from a March 19-20 meeting of Federal Reserve policymakers show they saw the U.S. economy weathering a global slowdown without a recession in the new few years.
Policymakers debated how to manage the Fed’s massive holding of bonds and agreed to be patient about any changes to its interest rate policy.
MSCI’s all-country equity index gained 0.13 per cent, while the pan-regional FTSEurofirst 300 index of leading shares closed up 0.17 per cent.
Reckitt Benckiser shares fell 6.5 per cent to weigh on Britain’s blue chip FTSE 100 index after the U.S. Justice Department accused Indivior Plc, a former RB unit, of illegally boosting prescriptions for its blockbuster opioid addiction treatment. Indivior shares tumbled 71.6 per cent.
On Wall Street, the Dow Jones Industrial Average rose 6.58 points, or 0.03 per cent, to 26,157.16, the S&P 500 gained 10.04 points, or 0.35 per cent, to 2,888.24 and the Nasdaq Composite added 54.97 points, or 0.69 per cent, to 7,964.24.
Industrial stocks closed slightly lower, as Boeing Co shares continued to weigh after the company on Tuesday reported zero new orders for its 737 MAX jet following a worldwide grounding of the aircraft in March.
Boeing’s shares fell 1.1 per cent, keeping the Dow Industrials in the red.
U.S. Treasury yields slipped, weighed down by the tepid U.S. inflation data for March, which reinforced expectations that the Fed would hold rates steady or possibly cut them by the end of the year.
“There is a persistent trend of inflation underperformance that may soon become problematic for the Fed,” said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets in New York.
The benchmark 10-year U.S. Treasury note rose 6/32 in price to push its yield lower to 2.4774 per cent.
The euro recouped earlier losses after Draghi underscored the risks facing the euro zone economy.
The dollar index fell 0.08 per cent, with the euro up 0.11 per cent to $1.1273. The Japanese yen strengthened 0.19 per cent versus the greenback at 110.95 per dollar.
Reuters