TSX closes higher, US equity markets lose ground – BNNBloomberg.ca

4:20 p.m. ET: TSX closes higher, U.S. equity markets lose ground

The S&P/TSX Composite Index extended its rally Tuesday, rising 1.07 per cent while benchmark indices south of the border erased gains to close in the red. The broad market S&P 500 closed 0.52 per cent lower, the Dow Jones Industrial Average fell a modest 0.13 per cent and the tech-heavy Nasdaq Composite Index was the laggard with a 1.40 per cent drop.

It’s shaping up to be a busy week for the Nasdaq, with a slew of tech titans reporting earnings as investors digest the early fallout of the COVID-19 pandemic and economic lockdown.

In Toronto, eight of the eleven TSX subgroups closed in positive territory, led by energy, consumer discretionary and financials. Health care, consumer staples and information technology bucked the trend to end Tuesday’s trading session lower.

In all, 150 of the TSX’s 230 constituents finished in the green.

Lumber stocks were noticeable outperformers, with Canfor Corp., West Fraser Timber Ltd. and Norbord Inc. all notching double-digit gains to rank among the top-performing stocks on the TSX.

Global oil prices remained mixed, with the price for U.S. benchmark West Texas Intermediate for June delivery falling 0.8 per cent to US$12.70 per barrel, while the world benchmark Brent crude held on to a three per cent gain.

WTI has been roiled by a number of technical changes to the methodology of major oil funds, which hold large volumes of the futures contracts for American oil. Those funds have been rebalancing their holdings toward contracts for later delivery in an effort to avoid having their net asset value fall below zero, after contracts for May delivery plunged into negative territory shortly before their expiration last week.

While some of the movement in near-dated crude contracts is a result of technical trading mechanisms interfering with the organic supply and demand dynamics of crude pricing, concerns remain about  global oversupply in the face of demand destruction resulting from the virus outbreak.

The Canadian dollar held near 71.46 cents U.S., up two-tenths of a cent against its American counterpart, though the greenback was broadly weaker against all of its major-market peers.

2:00 p.m. ET: North American equity markets retrace lost ground into mid-afternoon

North American equity markets bounced off the lows into the waning hours of Tuesday’s trade, with the S&P/TSX Composite Index rising 1.2 per cent, the S&P 500 and Dow Jones Industrial Average up a little more than a quarter of a per cent and the Nasdaq Composite Index shedding about half a per cent.

In Toronto, eight of the 11 TSX subgroups were higher, led by energy, consumer discretionary and financials. Health care, information technology and consumer staples remained in negative territory.

154 of the composite’s 230 constituents were in the green, led by Canfor Corp., Teck Resources Ltd. and NFI Group Inc.

Oil prices remained mixed, with U.S. benchmark West Texas Intermediate down about 2.5 per cent to trade at US$12.50 per barrel while the global Brent crude price was up about two per cent. Alberta’s Western Canadian Select was trading lower, down 29 per cent to trade at US$4.62 per barrel.

The Canadian dollar moderated gains, up two-tenths of a cent against its U.S. counterpart to trade at 71.45 cents U.S.

11:00 a.m. ET: North American markets give back early gains into late morning

North American equity markets traded near session lows into the late morning, with the S&P/TSX Composite clinging to a modest 0.3 per cent gain, and benchmark stock indices south of the border sliding into the red. The S&P 500 and Dow Jones Industrial Average both traded modestly lower, while the tech-heavy Nasdaq Composite Index fell about one per cent.

It’s a busy week for Nasdaq-listed stocks, with a slew of earnings from tech titans including Google parent company Alphabet Inc., Facebook Inc., Apple Inc., Amazon.com Inc. and Microsoft Corp. all reporting earnings in the coming days.

In Toronto, seven of the 11 TSX subgroups were trading in positive territory, with energy, consumer discretionary and financials notching the largest percentage gains. Health care, information technology and materials posted the largest losses.

U.S. benchmark oil prices moderated some losses, with WTI trading about four per cent lower at about US$12.25 per barrel.

9:40 a.m. ET: North American equity markets extend rally in risk-on trade

North American equity markets rallied into the opening trade Tuesday, extending Monday’s gains as a risk-on trade saw investors buy into assets like equities. The S&P/TSX Composite Index – now up more than 30 per cent from the March 23 trough – rose about one per cent out of the gate, the S&P 500 and Dow Jones Industrial Average gained about one-and-a-half per cent and the Nasdaq Composite Index was up one per cent.

Toronto’s benchmark index has now recouped about half of its losses from the February 20 peak to that March trough.

Global oil prices were mixed, with international benchmark Brent up nearly five per cent while American West Texas Intermediate for June delivery was essentially unchanged at US$12.75 per barrel. WTI has been notably volatile due to changes in the methodology of some major oil funds, as they shift their holdings away from futures for first-month delivery into longer-dated contracts.

The moves have been made in an effort to prevent the funds from having negative net asset values after last week’s historic plunge in the expiring May contract, which traded at negative US$40 per barrel ahead of expiration.

Alberta’s Western Canadian Select fell nearly 16 per cent to trade at US$5.48 per barrel, though Canadian crude is only priced a handful of times per day.

The Canadian dollar gained four-tenths of a cent against its U.S. counterpart to trade at 71.68 cents U.S. However, the greenback was showing noticeable weakness against all its global peers as investors took a more risk-on tone and sold traditional safe-haven assets.

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