Canadian stocks remain near record highs, supported by commodity prices; BMO on the influence of oil and gas

Canada’s main stock market, the Toronto Stock Exchange, added another 15 modest points on Friday to the nearly 50 points gained on Thursday, leaving the heavy resource index to approach recent all-time highs, supported by rising prices raw material. Reflecting this, BMO Economics in its “Talking Points” note this Friday said that even with a pullback in lumber and copper, the recovery in oil and gas is weighing more heavily, pushing commodity indices to steep. new cyclical highs. “Booming commodities do not suggest that demand is lacking,” the bank added.

BMO also noted that after the briefest of lulls, equities globally are once again near all-time highs. The MSCI World Index has risen nearly 27% in the past 18 months. “While this rate of growth in and of itself is not extraordinary,” he said, “remember the markets were already at record highs 18 months ago. It is an extraordinary force.”

Among sectors today, Financials gained 0.5% while Energy was only slightly higher. Materials lost nearly 0.4%.

Among commodities, gold edged up, approaching the US $ 1,800 mark even as the US dollar and bond yields rose. Gold for August delivery was up $ 1.10 to US $ 1,777.80 an ounce in Comex trading.

Meanwhile, West Texas Intermediate crude oil closed higher as the market waits for next week’s OPEC + group meeting to see if they will increase supply as demand recovers from the pandemic. WTI crude for August delivery closed up $ 0.75 to US $ 74.05 a barrel, Marketwatch reported. August Brent crude, the global benchmark, was last seen up $ 0.60 to US $ 76.16, while Western Canada Select rose $ 0.72 to US $ 60.23 on barrel.

You may also like

About Mallory Brown

Check Also

S&P 500 and Nasdaq push higher as commodities rally

The local currency rose 1.3% to over US67¢. The Bloomberg Cash Dollar Index slipped 1.3%; …

Leave a Reply

Your email address will not be published.