Canada’s main stock index rose on Thursday as energy shares were boosted by a rise in oil prices ahead of U.S. sanctions against major crude exporter Iran.
The Toronto Stock Exchange’s S&P/TSX composite index was up 35.34 points, or 0.22 per cent, at 16,204.62.
Five of the index’s 11 major sectors were higher, led by a 1.8-per-cent gain in the energy sector.
Suncor Energy Inc. rose 1.4 per cent, while Husky Energy Inc. was up 1.7 per cent.
Cenovus Energy Inc. shares rose 9 per cent after the energy producer said it had signed three-year deals with Canadian National Railway and Canadian Pacific Railway to transport crude.
Canadian National Railway Co. rose 0.3 per cent while Canadian Pacific Railway Ltd. was up 0.6 per cent.
The largest percentage gainer on the TSX was Cameco Corp , which jumped 15.7 per cent after a favorable ruling from the Tax Court of Canada.
Marijuana producers fell after the Ontario government unveiled its framework for recreational cannabis retailing. Canopy Growth Corp. lost 4.9 per cent and Aurora Cannabis Inc. was down 4.2 per cent, while Aphria Inc. declined 6.4 per cent.
The U.S. dollar rose held near a one-week high against a basket of major currencies on Thursday following a hike in U.S. interest rates, while a robust economy and surging shares of Apple Inc and Amazon.com boosted the U.S. stock market.
The Federal Reserve on Wednesday raised rates for the third time this year, indicating its confidence in the U.S. economy.
That sentiment carried the dollar higher into a second day and dented the euro, which was further pressured by worries about Italy’s budget.
“The Fed is moving faster than most central banks and that’s dollar-supportive,” said Erik Nelson, currency strategist, at Wells Fargo Securities in New York.
The dollar index rose 0.75 per cent, with the euro down 0.7 per cent to $1.1656.
The greenback also hit a two-week peak against the Swiss franc and Canadian dollar.
The Dow Jones Industrial Average rose 55.13 points, or 0.21 per cent, to 26,440.41, the S&P 500 gained 8.1 points, or 0.28 per cent, to 2,914.07 and the Nasdaq Composite added 51.60 points, or 0.65 per cent, to 8,041.97.
Apple rose 2.1 per cent, the biggest boost to the three main indexes after JP Morgan started coverage of the stock with an “overweight” rating.
Amazon rose 1.9 per cent after brokerage Stifel talked up its businesses.
MSCI’s gauge of stocks across the globe gained 0.07 per cent.
In Egypt, the central bank left its main interest rate unchanged on Thursday, saying the decision was consistent with achieving inflation targets.
Reports that Italy’s long-awaited budget was facing delay initially dented European shares, which then recovered. The pan-European FTSEurofirst 300 index rose 0.44 per cent.
Italy’s main Milan bourse slumped as much as 2 per cent , and was last down 0.6 percent, with the country’s big banks sinking even more as the country’s borrowing costs hit a three-week high in the government bond markets.
Rome confirmed that a cabinet meeting over budget targets was still planned for later, dismissing an earlier report in the Corriere della Sera newspaper that it could be delayed.
Still, Italy’s economic ministry was forced to deny that its chief Giovanni Tria, an academic who does not belong to any one party, had threatened to resign.
“It is very fluid and it is changing by the minute it seems,” head of EMEA macro strategy at State Street Tim Graf said.
“Even if things get resolved positively today, Italy is not a situation that is going to go away,” he added, pointing to the growing popularity of the country’s fractious anti-establishment coalition government.
Japan’s Nikkei briefly touched an eight-month high as signs that the United States may not impose further tariffs on Japanese automotive products for now lifted carmakers, though the index eventually ended down nearly 1 per cent.
Benchmark 10-year notes last rose 2/32 in price to yield 3.0536 per cent, from 3.061 per cent late on Wednesday.
Spot gold dropped 0.8 per cent to $1,184.31 an ounce, tumbling on the stronger dollar.
Oil edged higher, driven by the prospect of a shortfall in global supply once U.S. sanctions against major crude exporter Iran come into force in just five weeks’ time.
U.S. crude oil futures settled at $72.12 per barrel, up 55 cents or 0.77 per cent. Brent crude futures settled at $81.72, up 38 cents or 0.47 per cent.
Reuters